Oil prices continue the downtrend on oil rigs, potential production cut exit

By A/S Global Risk Management.

Michael Poulson, Global Risk Management. Image credit: Global Risk Management

Updated on 28 May 2018 06:54 GMT

Friday's weekly oil rig count from Baker Hughes showed an addition in the number of active rigs in the U.S. of 15. The last 7 of 8 weeks have shown increases and currently 859 rigs are pumping crude oil, which is around a 3-year high and U.S. crude oil production is bursting. More comments over the weekend from the world's top oil producers increase expectations of a soon-to-come exit from the current oil production cut deal between OPEC and a row of non-OPEC countries. One option is to return to the levels prior to the deal which took effect in January 2017, according to Russia's energy minister. A summit between North Korea and the U.S. is back on the table, a U.S. team is currently in North Korea to prepare a potential meeting next month. Political turmoil in Italy affects euro currency as elections could be on the way in the debt-struck country. Today is a holiday in both U.S. (Memorial Day) and UK (Spring Bank Holiday) which could mean smaller trading volumes which again could cause some additional price volatility. No major economic numbers are up today,

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