Crude prices have reversed losses post-inventory report, despite a bearish build to gasoline stocks. As crude tries to clamber away from key technical support, hark, here are five things to consider in markets today.
1) Halliburton CEO Dave Lesar is the voice of optimism despite the oil services company booking a quarterly loss amid hefty charges of $3.52 billion due to its failed merger with Baker Hughes. Mr. Lesar said ‘we believe the North American market has turned’ with the bottoming out of the rig count in the last quarter. He expects a modest uptick to the rig count through the second half of the year – a move which Halliburton is well-positioned to take advantage of.
2) The latest monthly OPEC oil market report has shown Saudi Arabian production is on its seasonal move higher, in an effort to meet summer power generation demand. Secondary sources reported it up to 10.3 million barrels per day, while primary sources pegged it at a higher 10.55mn bpd.
The image below shows how Saudi has been drawing down its stocks after they reached a record high last October; the Kingdom is trying to meet rising domestic demand, while trying to maintain its stance of targeting market share with its exports.
3) Saudi continues to export crude at a rapid clip, with our ClipperData showing loadings year-to-date currently 7.5 percent higher than year-ago levels. This goes some of the way to explaining the aforementioned draw in Saudi crude stocks: it has been maintaining production at