By Timothy S. Snyder, Matador Economics
Markets are beginning the week with a mostly sideways trade as investors watch to see what develops from President Trump’s address to a joint session of Congress Tuesday night, the first of his second term.
Political tensions are growing as the left continues to resist the president’s agenda and geopolitical tensions are now heightened after Ukrainian President Volodymyr Zelensky’s disastrous meeting at the White House on Friday!
Looking specifically at the energy complex, we saw Friday’s Baker Hughes Rig Count totals, and they once again failed to impress as they are not growing by any stretch of the imagination and production is staying pretty much steady.
OPEC+ is still considering keeping their production reduction program in place as nothing seems to be changing in the energy complex; other than a repudiation of “single source energy” (wind & solar only). The “all of the above” approach seems to be gaining ground across the globe and here in the U.S. as well and this includes growing interest in modular nuclear energy.
Friday’s Baker Hughes Rig Count posted a net + one for Total Rigs last week bringing that count to 593. Crude Oil Rigs lost two to 486, and Natural Gas Rigs added three rigs to bring that count to 102. Miscellaneous Rigs were unchanged at five and Offshore Rigs lost one to 13.
U.S. winter weather
Another week of wild weather pulls nat gas inventories lower, with wildfires in the Carolinas, Dust storms in the Southwest, Red Flag warnings from SW Texas through Kansas and winter weather plunging into the Midwest. There’s a little bit of this mess for everybody, as we begin the transition into meteorological Spring.
More energy commentary is available at www.matadoreconomics.com