Rig Counts & Talk of Turkey Move the Oil Complex

Main Image
Daily Settlement Prices

Markets ended the week on a fairly muted tone. “Summer Friday” was in full effect as front month WTI trading was just over the 400,000 lot threshold, even after an unusual rise near the end of the day.

Most of the energy complex moved marginally higher on Friday, with the ULSD contract as the lone exception. With ULSD lagging on Friday, it helps widen its discount to RBOB, typical for this time of year. Although stronger on Friday, front month WTI still remains at the lower end of the much talked about $45-$50 range it has traded in for most of the month.

The energy complex’s upward move was somewhat tempered by the Baker Hughes rig count release on Friday. This data set showed oil rigs were up six. While one week of rig count is not necessarily significant, last week’s rig count puts the outright level at the highest in almost two and a half months, illustrating that domestic supply may have reached its bottom, and ample supply will continue to be produced (see chart).

071816 Baker Hughes Rig Count Graph

That said, just before the future’s market close (5pm EST), the energy complex saw a sizable rise. This is unusual for trading on Fridays, as most have wound down for the week. However, reports emerged of a potential coup in the country of Turkey. Turkey is a seen as a gateway to the flow of oil in the region, and a potential unstable region could bottleneck supply. The uprising was quickly quelled, however, with the president of Turkey assuring that all was secured and severe punishments would be handed down. While there was no long term effect on the market, it is evidence of how quickly and dramatically  global news can swing the oil complex.


071816 Weekly Pricing Graph

Published by PAPCO, Inc. (PAPCO)

PAPCO Newsletter Disclaimer. The information that is published in this newsletter, including the market reports, is derived from trade, statistical, and other sources that we believe are reliable and accurate. However, PAPCO does not guarantee the completeness, accuracy, or reliability of such information, and information should not be relied upon as such. Additionally, PAPCO assumes no responsibility for the material contained in the newsletter and the views expressed therein. Further, PAPCO expressly disclaims any express or implied warranties or guarantees with regard to such information. The information contained in this newsletter and any views expressed herein are provided for your informational purposes only and should not be interpreted in any way as an offer, invitation to make an offer, inducement, or recommendation to buy or sell options contracts, commodity futures, products, or any other type of security.












Post Comment

Commercial Price Risk Mgmt Lubricants Retail Home Heat About Us
Fuel Products
Fleet Card
Energy Markets
Manage Risk
Custom Solutions
6 Easy Steps
Pricing Tools
Weekly Updates
Inventory Mgmt
Branded Fuels
Unbranded Fuels
Custom Solutions
Site Development
C-Store support
Inventory Mgmt
Pricing & Incentives
Delivery Options
Service Programs
Price Protection
Service Areas
News & Events
Contact Us

Sign up for
Email Updates


4920 Southern Blvd
Virginia Beach, VA 23462

© Copyright 2019

Site Map
Privacy Statement
Terms & Conditions