Us Drillers Cut Oil and Gas Rigs for Third Week in a Row
According to Baker Hughes ' report on Friday, U.S. energy firms reduced...
According to Baker Hughes ' report on Friday, U.S. energy firms reduced the total number of operating oil and natural gas rigs for a third consecutive week, marking the first time since late June. The total rig count fell by two to 583 in the week ending August 30, the lowest since June, putting it 48 rigs, or 8%, below the same time last year. Oil rigs remained unchanged at 483, while gas rigs fell by two to 95, the lowest since April 2021.
For August, the overall rig count dropped by six after increasing by eight in the previous month. Oil rigs increased by one, but gas rigs declined by six. In the Marcellus Shale, the country's largest gas-producing basin, two rigs were cut, bringing the total down to 23, the lowest since August 2016. In Pennsylvania, three rigs were cut, reducing the total to 18, the lowest since December 2021.
The rig count declined by about 20% in 2023, following increases of 33% in 2022 and 67% in 2021. This was due to falling oil and gas prices, inflation-driven costs, and a focus on debt reduction and shareholder returns over production growth.
U.S. oil futures rose about 3% in 2024 after an 11% drop in 2023, while gas futures fell by 16% in 2024 after a 44% plunge in 2023. Despite higher oil prices, the continued decline in gas futures led many energy firms to cut capital spending in 2024, expecting to reduce gas production for the first time since 2020; according to TD Cowen, 26 independent exploration and production companies plan to cut spending by about 2% in 2024 compared to 2023, contrasting with spending increases of 27% in 2023, 40% in 2022, and 4% in 2021.
Oil settles $1 down as supply set to rise, uncertainty around Fed rate cuts
Oil prices retreated on Friday as investors weighed expectations...
Oil prices retreated on Friday as investors weighed expectations of a rise in OPEC+ supply starting in October, alongside dwindling hopes of a hefty U.S. interest rate cut next month, following data showing strong consumer spending.
Brent crude futures for October delivery, which expire on Friday, settled $1.14 lower, or 1.43%, at $78.80 a barrel, marking a decline of 0.3% for the week and 2.4% for the month.
U.S. West Texas Intermediate crude futures settled down $2.36, or 3.11%, to $73.55, a drop of 1.7% in the week and a 3.6% decline in August.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is set to proceed with a planned oil output hike from October, as the Libyan outages and pledged cuts by some members to compensate for overproduction counter the impact of sluggish demand, six sources from the producer group told Reuters.
Dow sets another record high ahead of Labor Day weekend
U.S. stocks ended higher Friday, with the Dow Jones Industrial...
U.S. stocks ended higher Friday, with the Dow Jones Industrial Average notching a fresh record peak ahead of Labor Day weekend.
The Dow rose 228.03 points, or 0.6%, to close at 41,563.08.
The S&P 500 climbed 56.44 points, or 1%, to finish at 5,648.40.
The Nasdaq Composite advanced 197.19 points, or 1.1%, to end at 17,713.62.
All three major U.S. stock indexes accelerated their climb, approaching the closing bell to finish August with monthly gains.
The Dow rose 1.8% for the month, while the S&P 500 jumped 2.3% and the technology-heavy Nasdaq Composite increased 0.6%, according to Dow Jones Market Data. The Dow and S&P 500 each logged a fourth straight month of gains, as investors on Friday weighed a fresh reading on U.S. inflation that was largely in line with Wall Street's expectations.
The U.S. stock market will be closed Monday in celebration of Labor Day.
Freight rail resumes in Canada, but challenges remain
Canadian National and Canadian Pacific Kansas City resumed freight rail...
Canadian National and Canadian Pacific Kansas City resumed freight rail service on Monday after a brief lockout over a union labor contract dispute but it could take a full month for supply chains to normalize, says John Corey of the Freight Management Association of Canada. Labor issues are also gaining momentum at Canada's ports, which could result in further disruption.
Shell Sells Pipeline, Terminal Assets to Edgewater Midstream
Shell is selling its Sinco pipeline system...
Shell is selling its Sinco pipeline system and Colex terminal to Edgewater Midstream, according to an Aug. 29 press release.
The assets were part of Shell’s remaining portfolio connected to the Deer Park Refinery on the Houston Ship Channel.
Shell sold its majority stake in the Deer Park Refinery to Pemex in 2022 for an estimated $596 million. However, Shell maintained ownership of Sinco and Colex, which were historically integrated into Deer Park operations.
