The global oil markets are experiencing a notable shift, as both physical and paper markets reflect an ample supply. Recent data indicates U.S. gas inventories were 647 billion cubic feet above the ten-year average as of May 10, a substantial 33%. n the U.S., recessionary pressures loom large as mixed indicators paint a somber picture. A Guardian/Harris poll reveals that 56% of respondents believe the U.S. is already in a recession. RES’s management is optimistic about the energy price and drilling activities, although it reckoned pumping capacity would remain disciplined. Read this and other important developments in this latest update!
1. Monday Macro View: Global Oil Markets – PREMIUM
Hedge funds and other money managers have responded to these trends by selling off significant quantities of gasoline futures and options, equivalent to 36 million barrels between April 9 and May 7. This selling spree extended to broader petroleum markets, with 143 million barrels sold in the six most important petroleum contracts over the same period. This substantial liquidation highlights the market’s bearish outlook amid plentiful supplies. Read the full article to learn more about the latest in oil markets.
2. RPC’s Perspective in Q1: KEY Takeaways – PREMIUM
RES’s management was optimistic about the energy price and drilling activities, although it reckoned pumping capacity would remain disciplined. RES will place the new Tier 4 DGB frac spread in service in a few months. The frac market sees a lot of competition from the smaller players who likely bid aggressively.Avik Chowdhury delves deeper into the financials and cash flow plans for RPC in this highly useful piece!
3. Market Sentiment Tracker – U.S., China, and Europe – PREMIUM
In the U.S., recessionary pressures loom large as mixed indicators paint a somber picture. A Guardian/Harris poll reveals that 56% of respondents believe the U.S. is already in a recession. China’s economic outlook is equally fraught with challenges. The April Beige Book indicates that while consumers traveled, their spending remained restrained. Europe’s economic environment reflects a similar pattern of tentative recovery amid persistent challenges.
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