Commodities
US Active Rig Count Rises by 7, Baker Hughes (BKR) Says
US Active Rig Count Rises by 7, Baker Hughes (BKR) Says
$BKR
Baker Hughes
$BKRNASDAQEnergy
209 stories mentioning Baker HughesUpdated 1d ago
Baker Hughes reported US rigs rising by one to 550 amid a Permian and Haynesville land-drilling rebound, while crude posted a weekly loss.
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Sectors
Sector Update: Energy Stocks Advance Premarket Friday
Energy stocks were advancing premarket Friday, with the State Street Energy Select Sector SPDR ETF (XLE) up 0.4%.The United States Oil Fund (USO) was down 1.4% and The United States Natural Gas Fund (UNG) was 1.5% lower.Front-month US West Texas Intermediate crude oil was 0.3% higher at $96.66 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil gained 0.9% to reach $103.49 per barrel, and natural gas futures were down 2.3% at $2.95 per 1 million British Thermal Units.TotalEnergies (TTE) is considering selling a 50% stake in a portfolio of European renewable energy assets, Bloomberg reported Friday, citing unnamed people familiar with the matter. TotalEnergies shares were down nearly 2% pre-bell.EU antitrust regulators will decide by June 26 whether to approve or further investigate Baker Hughes' (BKR) proposed $13.60 billion acquisition of Chart Industries (GTLS), Reuters reported, citing European Commission filing. Baker Hughes stock was 0.1% lower premarket.Frontline (FRO) shares were down 0.7% even after the company posted higher Q1 adjusted earnings and revenue.
$BKR$FRO$GTLS$TTE$UNG$USO$XLE
Equities
Market Chatter: EU to Rule on Baker Hughes $13.6B Acquisition of Chart Industries by June 26
EU antitrust regulators will decide by June 26 whether to approve or further investigate Baker Hughes' (BKR) proposed $13.6 billion acquisition of Chart Industries (GTLS), Reuters reported Friday, citing European Commission filing.The deal, announced in July last year, is intended to expand Baker Hughes' presence in industrial technology, including services tied to liquefied natural gas and data center infrastructure, while strengthening its broader energy and industrial portfolio.The European Commission, which enforces competition rules in the EU, can approve the transaction with or without conditions, or open a deeper investigation if it identifies potential antitrust concerns, according to Reuters.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
$BKR$GTLS
Oil & Energy
Weekly Crude Benchmarks Surge on Hormuz Disruptions, Geopolitical Gridlock
Oil benchmarks rose over the week as an escalating geopolitical gridlock and severe maritime security threats in the Middle East overrode short-lived diplomatic optimism.West Texas Intermediate settled at $105.66 per barrel, up from $94.68/bbl the previous week, while Brent closed at $109.18/bbl, up from $100.14/bbl a week earlier.WTI registered weekly gains of 10.48%, while Brent was up 7.79%.The upward weekly trajectory was fueled by the prolongation of an effective closure at the crucial Strait of Hormuz, which eroded global safety buffers and triggered supply anxieties that overshadowed high-level discussions between US President Donald Trump and Chinese President Xi Jinping in Beijing, analysts noted.Trump departed Beijing on Friday after meeting with President Xi during a two-day diplomatic visit to China without securing a breakthrough to end the blockade of the Strait of Hormuz.During a press briefing on Air Force One, Trump said he discussed lifting sanctions on Chinese companies purchasing Iranian oil with Chinese President Xi Jinping."... I'm going to make a decision over the next few days," Trump said about potentially lifting sanctions.The US recently sanctioned several Chinese refiners tied to Iran's oil trade as Washington expanded economic pressure on Tehran, while China has remained the largest buyer of Iranian crude shipments.China wants the Strait of Hormuz reopened as energy flows through the route remain heavily disrupted following recent tensions with Iran. "He'd like to see it opened up," Trump said.Wang Yi, China's Foreign Minister, said Friday that China wants the Strait of Hormuz reopened quickly while supporting efforts to maintain the ceasefire, China's state-owned media outlet Xinhua reported.China believes a permanent and comprehensive ceasefire offers the long-term solution to issues surrounding the Strait of Hormuz, Wang said during a press briefing in Beijing.Wang also said China encourages the US and Iran to continue resolving disputes, including nuclear-related issues, through negotiations.The week began with a sharp rally after President Trump rejected an Iranian peace counteroffer, labeling it "totally unacceptable" and declaring the existing ceasefire to be on "massive life support."This diplomatic collapse dashed market hopes for a quick fix, while momentum amplified as Washington levied new sanctions against an Islamic Revolutionary Guard Corps oil-shipping network accused of using front companies across Oman, Hong Kong, and the UAE to bypass restrictions.The physical severity of the 10-week blockade was laid bare by mid-week industry reports.The International Energy Agency's May oil market report confirmed that an unprecedented 14.4 million barrels per day of Gulf production was shut in, while Bloomberg satellite imagery showed Iranian export terminals grinding to a virtual standstill.ANZ analysts warned that if the chokepoint remains closed, the second quarter of 2026 will suffer the largest quarterly crude inventory drawdown in history at 6.5 mb/d.Crude prices experienced a temporary mid-week reprieve, pausing on Wednesday and retreating on Thursday following reports that Iran had allowed a limited convoy of about 30 vessels to cross the strategic chokepoint.This brief easing coincided with the Trump-Xi summit, though President Trump downplayed any imminent diplomatic breakthrough regarding the energy crisis.Bearish demand revisions also capped gains, as OPEC downgraded its 2026 global demand growth forecast to 1.2 mb/d and the IEA revised its outlook to a demand contraction of 420,000 b/d.Furthermore, OPEC data revealed that its April production had plummeted by 1.73 mb/d to 18.98 mb/d, a steep decline that reflected the final month of the UAE's membership in the producer group.Meanwhile, the Energy Information Administration released its May Short-Term Energy Outlook earlier this week. The EIA slightly lowered its Brent crude price outlook for 2026 while raising its 2027 forecast, reflecting a shift in the expected supply-demand balance.Near-term prices were supported by tighter market conditions driven by supply disruptions and lower inventories, while expectations of weaker demand growth and improving supply conditions shaped the medium-term outlook. The agency still expects prices to ease into 2027 as markets normalize.Disruptions in the Strait of Hormuz are expected to keep global oil markets tight after 10.5 mmb/d of Middle East crude output went offline in April, the EIA said.Brent crude is seen averaging about $106/bbl in Q2 2026 as global inventories fall sharply, according to the EIA STEO. The agency expects prices to later ease to about $89/bbl in Q4 2026 and $79/bbl in 2027 as Middle East supply gradually recovers.Crude and petroleum product flows through the Strait of Hormuz fell to 14.6 mmb/d in Q1, down from 20.7 mmb/d in Q4 2025 and 20.4 mmb/d in Q1 2025, according to the EIA's Global Energy Security data released Wednesday.However, the market's mid-week pullback was abruptly reversed on Friday as physical shipping threats flared up once again.Sentiment soured rapidly following reports from the United Kingdom Maritime Trade Operations that a commercial vessel was boarded and seized by unauthorized personnel at the entrance of the Strait of Hormuz and forced into Iranian waters.This incident closely followed the confirmed sinking of an Indian merchant ship in the nearby Gulf of Oman.Compounding the physical supply friction, the US Central Command said in an X post on Friday, "As of today, 75 commercial vessels have been redirected and 4 have been disabled to ensure compliance."On the supply front, US crude oil inventories decreased by 4.3 million barrels to 452.9 mmbbls in the week ended May 8, the EIA said in its weekly report on Wednesday.Crude inventories are now about 0.3% above the five-year average for this time of year, the EIA said.The US oil rig count rose by five from 410 the previous week to 415, in the week ending May 15, according to data from Baker Hughes (BKR) released Friday. That compares with 465 oil rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by three to 675 from 672 the previous week.Money managers in the WTI crude futures and options markets maintained their net long positions in the week ended May 12, according to the Commodity Futures Trading Commission's latest Commitments of Traders report released on Friday.The data showed that money managers reported 214,128 long positions, up 89 from May 5, while short positions increased by 2,462 to 82,083.
$BKR
Commodities
Weekly US Natural Gas Posts Gains on Warm Weather Forecasts Despite Soft Demand
US natural gas markets edged higher over the week as weather forecasts pointed to above-normal temperatures expected to lift cooling demand, even as overall consumption remained muted across much of the US.The front-month June contract price rose to $2.96 per million British thermal units from $2.75/MMBtu on May 8.The front-month June contract price rose over the week to $2.86/MMBtu from $2.73/MMBtu on May 8, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Wednesday.Natural gas spot prices rose by $0.13/MMBtu to $2.88/MMBtu during the week ended May 13, according to the EIA, from $2.75/MMBtu the prior week.This comes despite near-normal temperatures prevailing across most of the US, with limited heating or cooling needs, leading to lower gas consumption. Total gas demand dropped 0.5 billion cubic feet per day, or by 1% from the prior week, according to LSEG data.This was led by a 1.8 Bcf/d, or 13% decline in residential and commercial consumption, which was largely offset by a 1.8 Bcf increase in demand from the electric power sector.Additionally, LNG feedgas continued to average around 17 Bcf/d, compared to the 30-day moving average of 18.75 Bcf. This is largely due to several major LNG facilities undergoing planned maintenance.Prices surged across most regional hubs during the week, but not all, with Waha reporting a $0.36/MMBtu increase. In the power sector, the Electric Reliability Council of Texas, also known as ERCOT, supplied 20% more natural gas-fired generation, owing to a steep decline in wind and nuclear generation, which fell by 19% and 12%, respectively.The net injection into storage for the week ended May 8 was 85 Bcf, up from 63 Bcf the prior week, bringing total gas inventories to 2,290 Bcf, according to EIA data. The injection was slightly below analyst forecasts of 86 Bcf, supporting prices, according to data compiled by Investing.com.During the same week last year, the EIA reported a net injection of 109 Bcf, with the five-year average for this period at 84 Bcf.Total gas inventories at 2,290 Bcf are now 51 Bcf, or 2% above the corresponding period a year ago, and 140 Bcf, or 7%, higher than the five-year average for this period.Nearly all regions reported a net injection of working gas for the week ended May 8, with the East and South Central regions injecting 27 Bcf, while the Pacific and Mountain regions remain above their respective year-ago and five-year average levels.Analysts at NRG Energy noted that storage replenishment has been much slower so far this year, with surpluses relative to prior-year figures starting to fall.Meanwhile, the US gas rig count dropped by one from 129 the previous week to 128, in the week ending May 15, according to data from Baker Hughes (BKR) released Friday. That compares with 108 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by three to 675 from 672 the previous week.Weather forecasts are now pointing to above-normal temperatures across most of the country over the last week of this month, according to the National Weather Service. This is expected to add to cooling gas demand over the next two weeks.A total of 37 liquefied natural gas-carrying vessels left US ports during the week, up by seven, compared to 30 vessels last week, with a total capacity of 141 Bcf, up by 26 Bcf compared to the prior week.In international markets, European TTF gas prices averaged $15.68/MMBtu for the week ended May 13, $0.17/MMBtu higher than the previous week.The Japan-Korea Marker averaged $16.93/MMBtu, about $0.03/MMBtu higher than the prior week.In project development news, Caturus announced a final investment decision on its $13 billion Commonwealth LNG project in Cameron Parish, Louisiana. The company also secured $9.75 billion in financing for the 9.5 million metric tons per annum export terminal, which is scheduled to enter service in 2030.Speaking during a CNBC interview reposted by the Department of Energy, US Energy Secretary Chris Wright said the market had lost about 10 Bcf/d of gas exports amid disruptions affecting LNG trade flows.Wright said the US currently exports about 20 Bcf/d of natural gas, roughly double the volumes exported by the next-largest global suppliers. He added that the US is still adding about 2.5 Bcf/d of new export capacity this year.
$BKR
Commodities
Update: US Active Rig Count Rises by 3, Baker Hughes Says
(Updates with additional details.)The combined count of crude oil, natural gas, and miscellaneous rigs in the US rose by three to 551 in the week ending May 15, according to data from Baker Hughes (BKR) released Friday.The US oil rig count rose by five from 410 the previous week to 415, while the number of gas rigs dropped by one from 129 the previous week to 128.The number of miscellaneous rigs in the US dropped by one from 9 the previous week to 8, the data revealed. The US had 465 oil, 108 gas, and three miscellaneous rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by three to 675 from 672 the previous week.Price: $64.72, Change: $+0.11, Percent Change: +0.17%
$BKR
Commodities
US Active Rig Count Rises by 3, Baker Hughes Says
The combined count of crude oil, natural gas, and miscellaneous rigs in the US rose by three to 551 in the week ending May 15, according to data from Baker Hughes (BKR) released Friday.The US oil rig count rose by five from 410 the previous week to 415, while the number of gas rigs dropped by one from 129 the previous week to 128.Price: $64.72, Change: $+0.11, Percent Change: +0.16%
$BKR
Commodities
US Active Rig Count Rises by 3, Baker Hughes (BKR) Says
US Active Rig Count Rises by 3, Baker Hughes (BKR) Says
$BKR
Wire
Oilfield Services Stocks Post Solid Q1 Results Amid Easing Middle East Concerns, Morgan Stanley Says
Oilfield services and equipment stocks delivered strong Q1 results, mainly driven by stable North American activity and better-than-feared Middle East impact, Morgan Stanley said in a note Thursday.According to the note, Middle East disruptions remained the main near-term headwind for the sector, but management teams broadly described the impact as "transitory."Companies including Baker Hughes (BKR), Halliburton (HAL), SLB (SLB), NOV (NOV), Helmerich & Payne (HP), and Tenaris (TS) pointed to effects such as offshore activity curtailments, supply chain friction, higher logistics costs, and softer regional activity.The companies also highlighted incremental activity upside outside the region, as customers increasingly focus on energy security and supply diversification. Tenaris noted that operators are already accelerating North American and offshore activity in response, while Transocean (RIG) said the conflict has reinforced the global energy security imperative, the bank said."The broader takeaway was that the geopolitical shock may ultimately extend the international and offshore upcycle, thus supporting a more constructive medium-term backdrop," the firm added.Morgan Stanley raised its price targets on Tenaris to $53 from $50 and on Helmerich & Payne to $39 from $35.Price: $62.98, Change: $-0.62, Percent Change: -0.97%
$BKR$HAL$HP$RIG$SLB$TS
Oil & Energy
Crude Benchmarks Post Weekly Slump Amid Hormuz Escalation, Peace Deal Doubts
Global oil benchmarks ended the week in negative territory on Friday, as a volatile mix of military escalation in the Strait of Hormuz and tentative hopes for a diplomatic breakthrough kept markets on edge.West Texas Intermediate settled at $94.68/bbl, down from $102.50/bbl the previous week, while Brent closed at $100.14/bbl, compared with $109.20/bbl a week earlier.WTI registered a weekly loss of 6.4%, while Brent declined 7.42%.Despite late-week price spikes driven by renewed fire exchanges, both benchmarks still ended the week lower, weighed down by earlier optimism that a 14-point US-Iran peace memorandum could eventually reopen global shipping lanes.The week began with the US military launching "Project Freedom" to escort commercial vessels through the blockaded Strait of Hormuz.This move triggered immediate Iranian missile and drone strikes against UAE infrastructure and transit vessels, with Tehran claiming the operation violated restricted zones.The Strait of Hormuz remains effectively closed, with renewed clashes between US and Iranian forces reducing the prospect of a near-term reopening, Saxo Bank strategists said.On Friday, the UAE Defense Ministry said Friday its air defenses engaged two ballistic missiles and three drones launched from Iran, the third time this week that it has fired on the UAE.While the US subsequently drafted a UN Security Council resolution to safeguard navigation, President Donald Trump's mid-week announcement of "great progress" on a peace deal briefly calmed the market.Prices retreated as Washington paused its escort missions to allow Tehran time to review a one-page memorandum of understanding intended to end the conflict.However, sentiment was later challenged by a tightening supply picture in the US.The Energy Information Administration reported a 2.3-million-barrel drawdown in US crude inventories, bringing stocks to 457.2 mmbbls.Market analysts noted that US refineries are increasingly reliant on domestic stocks to offset the prolonged disruption to Middle Eastern supply, pushing US crude exports to 4.75 million barrels per day.Volatility surged again by Thursday after reports emerged of Iranian missiles targeting US Navy vessels and explosions near Bandar Abbas.The escalation followed a US Treasury move to sanction Iraq's deputy oil minister for allegedly helping Iran bypass embargoes.While these flashes of conflict forced prices higher in the final sessions, they were insufficient to erase the cumulative losses of a week defined by the market's search for a diplomatic floor.Saxo analysts added that the International Energy Agency has pegged regional supply losses at about 14 million barrels per day, "only partly offset by surging US exports, strategic reserve releases and demand destruction."Weekly US oil product exports hit a record high, according to EIA data.US exports of total petroleum products hit a record 8.2 mmb/d in the week ending May 1, the highest level since the Energy Information Administration started reporting the product export data in February 1991.The weekly figure is up from 7.7 mmb/d a week ago, according to the EIA.Total weekly US crude oil and petroleum products exports stood at 12.97 mmb/d, down from 14.18 mmb/d a week prior, driven by a sharp drop in crude exports, EIA data showed.Weekly crude exports were at 4.8 mmb/d, down from 6.4 mmb/d the previous week.Meanwhile, the US oil rig count rose by two from 408 the previous week to 410 in the week ending May 8, according to data from Baker Hughes (BKR) released Friday. That compares with 467 oil rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by two to 672 from 670 the previous week.Money managers in the WTI crude futures and options markets maintained their net long positions in the week ended May 5, according to the Commodity Futures Trading Commission's latest Commitments of Traders report released on Friday.The data showed that money managers reported 214,039 long positions, down 5,611 from April 28, while short positions were down 2,066 to 82,083.
$BKR
Oil & Energy
Weekly US Natural Gas Slips on Mixed Fundamentals Despite Below-Forecast Storage Injection
US natural gas markets edged lower over the week, despite below-forecast net storage injections and colder-than-normal weather across most of the country in recent days, amid conflicting demand indicators.The front-month June contract price fell over the week to $2.75 per million British thermal units from $2.79/MMBtu on April 24.However, the front-month June contract price rose by $0.08 over the week to $2.730 per million British thermal units, from $2.647/MMBtu on May 1, according to the US Energy Information Administration's Weekly Gas Storage Supplement released on Thursday.Natural gas spot prices rose by $0.15/MMBtu to $2.75/MMBtu during the week ended May 6, according to the EIA, from $2.60/MMBtu the prior week.On the demand side, cooler-than-normal temperatures across the country limited both heating and cooling demand, with total US natural gas demand dropping by 0.7 billion cubic feet per day, driven by a 1.2 Bcf per day decline in power sector consumption, according to LSEG data.Additionally, LNG feedgas averaged 17.4 Bcf/d throughout the past week, down 7% from the prior week, EIA said, citing LSEG data. This comes amid planned maintenance across several major terminals.Natural gas prices rose across most regional hubs, barring Waha, where prices declined $1.07/MMBtu over the past week, according to the EIA.The net injection into storage for the week ended May 1 was 63 Bcf, down from 79 Bcf the prior week, bringing total gas inventories to 2,205 Bcf, according to EIA data. This week's figures were also below forecasts at 72 Bcf, prompting a market rally, according to data compiled by Investing.com.During the same week last year, the EIA reported a net injection of 104 Bcf, with the five-year average for this period at 77 Bcf.Total gas inventories at 2,205 Bcf are now 75 Bcf, or 4% above the corresponding period a year ago, and 139 Bcf, or 7%, higher than the five-year average for this period.Nearly all regions reported a net injection of working gas for the week ended May 1, with the East injecting the most, up 29 Bcf from the prior week, with total inventories at 361 Bcf, which is just 1 Bcf, or 0.3% below its five-year average for this period.The EIA reported that storage levels across the Pacific, Mountain and the South Central Non-salt regions were all above their respective five-year averages, while the rest were still at a deficit.According to Pinebrooke Energy Advisors, this week's storage report marked the "tightest storage build" since early April, based on population-weighted temperatures, and 2024 and 2025 weekly changes.Additionally, the US gas rig count dropped by one from 130 the previous week to 129 in the week ending May 8, according to data from Baker Hughes (BKR) released Friday. That compares with 108 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by two to 672 from 670 the previous week.Weather forecasts had pointed to below-normal temperatures for early and mid-May, however, almost the whole of the country is now expected to see above-normal temperatures from May 15 to May 21, according to the National Weather Service, which could add to cooling demand.A total of 30 liquefied natural gas-carrying vessels left US ports during the week, down by five, compared to 35 vessels last week, with a total capacity of 115 Bcf, down by 18 Bcf compared to the prior week.In international markets, European TTF gas prices averaged $15.85/MMBtu for the week ended May 6, $0.44/MMBtu higher than the previous week.The Japan-Korea Marker averaged $16.90/MMBtu, about $0.31/MMBtu higher than the prior week.
$BKR
Commodities
Update: US Active Rig Count Rises by 1, Baker Hughes Says
(Updated to include additional details.)The combined count of crude oil, natural gas, and miscellaneous rigs in the US rose by one to 548 in the week ending May 8, according to data from Baker Hughes (BKR) released Friday.The US oil rig count rose by two from 408 the previous week to 410, while the number of gas rigs dropped by one from 130 the previous week to 129.The number of miscellaneous rigs in the US held steady at nine from last week, the data revealed. The US had 467 oil, 108 gas, and three miscellaneous rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by two to 672 from 670 the previous week.Price: $63.99, Change: $+0.46, Percent Change: +0.73%
$BKR
Commodities
US Active Rig Count Rises by 1, Baker Hughes Says
The combined count of crude oil, natural gas, and miscellaneous rigs in the US rose by one to 548 in the week ending May 8, according to data from Baker Hughes (BKR) released Friday.The US oil rig count rose by two from 408 the previous week to 410, while the number of gas rigs dropped by one from 130 the previous week to 129.Price: $63.98, Change: $+0.45, Percent Change: +0.71%
$BKR
Commodities
US Active Rig Count Rises by 1, Baker Hughes (BKR) Says
US Active Rig Count Rises by 1, Baker Hughes (BKR) Says
$BKR
Commodities
RPC Posts Higher Q1 Sales Amid Soft Drilling, Crude Output Remains Resilient
US oilfield services provider RPC (RES) reported Q1 earnings Thursday, showing sales of $454.8 million, up from $332.9 million, even as drilling and completion activity continued to run well below pre-2023 levels.The average US rig count in Q1 was 548 rigs, down 6.8% from 588 rigs a year earlier, RPC said, citing data from Baker Hughes (BKR).RPC reported US crude production holding firm at about 14 million barrels per day, even as rig counts declined from 2022 highs.RPC said oil production has trended higher despite lower rig activity. It added that frac spreads have also declined.Price: $7.02, Change: $-0.36, Percent Change: -4.88%
$BKR$RES
Research
Barclays Downgrade Baker Hughes to Equalweight From Overweight, Price Target is $74
Baker Hughes Company (BKR) has an average rating of overweight and mean price target of $71.95, according to analysts polled by FactSet.
$BKR
Equities
Equinor Extending Supplier Deals for Drilling, Well Services
Equinor (EQNR) is extending key supplier deals for drilling and well services with an aggregate value of about 17 billion Norwegian kroner ($1.83 billion), the company said Monday.It is exercising one-year options under three contracts for integrated drilling and well services, as well as two-year options under 18 company framework agreements for relevant specialist services.The company said the drilling and well services deals are valued at 8.3 billion kroner and were awarded to Baker Hughes (BKR), Halliburton (HAL) and SLB (SLB).The corporate framework agreements are pegged at 4.3 billion kroner per annum over two years, according to Equinor.The company's shares were up 1.5% in premarket activity.
$BKR$EQNR$HAL$SLB
Oil & Energy
Weekly Crude Prices Log 2nd Weekly Gain on OPEC+ Shake-up, Intensifying Hormuz Disruption
Global oil benchmarks posted a second straight week of gains as the energy market grapples with a tightening blockade in the Strait of Hormuz and the UAE's exit from OPEC in a historic fracture of the allianceWest Texas Intermediate closed Friday at $102.5/bbl, up from $94.88/bbl the previous week, while Brent futures settled higher at $109.2/bbl, up from $105.98/bbl a week earlier.Both crude benchmarks, including Brent and West Texas Intermediate, added 3.5% and 8%, respectively, on a weekly basis."Brent Crude remains elevated after hitting a wartime high on Thursday, with no sign that US and Iranian blockades of the Strait of Hormuz will be lifted anytime soon, prolonging and worsening the supply squeeze," Saxo Bank analysts said.The market has been characterized by extreme volatility this week, driven by a combination of unprecedented geopolitical supply shocks and a structural shift in the OPEC+ alliance.The week opened under immense pressure. Following nine weeks of conflict in the Middle East, the Strait of Hormuz remains effectively closed to significant commercial traffic.By Tuesday, exports through the Strait had plummeted to just 3.8 million barrels per day, a staggering drop from the pre-crisis levels of over 20 mb/d."An oil major has warned of imminent critical shortages for some nations. However, Thursday's sharp reversal underscores a market that is taking the stairs up but risks the elevator down on any sudden easing headline - making conditions exceptionally challenging for traders," Saxo Bank analysts added.On Wednesday, Brent crude rose for its seventh consecutive session, hitting levels not seen since the peak of the Russia-Ukraine crisis in 2022.The most significant market-moving event occurred mid-week with the surprise announcement that the UAE would officially exit OPEC and the OPEC+ alliance, effective May 1.This departure, the most significant since Qatar and Angola's exits, has raised serious questions about the future of quota discipline within the remaining OPEC members.The market is currently weighing the long-term bearish potential of more UAE supply against the short-term bullish reality of the Middle East supply blockade.On Friday, the US Treasury Department's Office of Foreign Assets Control issued an alert warning of sanctions risks tied to Iran-linked payments for Hormuz transit, flagging potential exposure for global firms and financial institutions."Maritime industry participants involved with vessels calling at Iranian ports face significant sanctions risk under multiple sanctions authorities targeting Iran's shipping sector and ports, and OFAC will continue to aggressively target Iran's main revenue-generating sectors, in particular its petroleum and petrochemical sectors...," OFAC's alert said.Iran may seek payments through government-issued fiat currency, digital assets, offsets, swaps, or in-kind payments, including donations to entities such as the Iranian Red Crescent Society, OFAC added.US sanctions prohibit American individuals and US-controlled foreign entities from engaging in transactions with the Iranian government unless specifically authorized or exempt, OFAC said.Addressing reporters on Friday, Trump said oil and gasoline prices will tumble once the war ends."When the war ends, gasoline prices are going to tumble because there is so much right now on the scene already loaded into tankers, tankers that can't escape the Strait," Trump said, adding that gasoline prices are likely to fall to record lows.The US President described the US naval blockade as "unbelievable.""The blockade has been unbelievable, powerful, 100% it's been actually unbelievable. If we left right now, we'd have a great victory, but we're not doing that, negotiating with them," Trump said.Meanwhile, the market remains in backwardation, with spot prices higher than forward contracts, indicating tight prompt supply amid strong demand.A wide price disconnect emerged when futures hovered around $110/bbl, while physical crude in some regions touched nearly $150/bbl as refiners scrambled for available barrels.On the supply front, US crude stockpiles dropped by 6.2 million barrels to 459.5 mmbbls in the week ended April 24, the Energy Information Administration said in its weekly report on Wednesday.Crude inventories are now about 1% above the five-year average for this time of year, the EIA said.The US oil rig count rose by one from 407 the previous week to 408, in the week ending May 1, according to data from Baker Hughes (BKR) released Friday. That compares with 472 oil rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, dropped by four to 670 from 674 the previous week.Money managers in the WTI crude futures and options markets maintained their net long positions in the week ended April 28, according to the Commodity Futures Trading Commission's latest Commitments of Traders report released on Friday.The data showed that money managers reported 219,650 long positions, down 827 from April 21, while short positions were up 7,073 to 84,149.For the coming week, analysts expect the market to remain highly sensitive to any headlines regarding Hormuz traffic or ceasefire negotiations.
$BKR
Commodities
US Natural Gas Prices Continue Weekly Decline on Lower Demand, Inventory Build
US natural gas markets eased over the week, as softer demand and rising stockpiles offset weather-driven volatility and a bullish storage report.The front-month June contract price fell over the week to $2.789 per million British thermal units, from $2.861/MMBtu on April 24.For the week ended April 29, the May 2026 Nymex contract was down $0.05 at $2.559/MMBtu, compared with $2.61/MMBtu the prior week, the Energy Information Administration's Weekly Gas Storage Supplement said.Natural gas spot prices fell by $0.16/MMBtu to $2.60/MMBtu during the week ended April 29, according to the EIA, from $2.76/MMBtu last week.This was attributed to a 2% decline, or 1.2 billion cubic feet per day, in total US natural gas demand compared with the prior week, with a 12% decline in residential and commercial demand during the period.The EIA noted that the Henry Hub price remained the highest recorded price across all major pricing hubs in the US during the week.The net injection into storage for the week ended April 24 was 79 Bcf, down from 103 Bcf the prior week, bringing total gas inventories to 2,142 Bcf, according to EIA data.During the same week last year, the EIA reported a net injection of 105 Bcf, with the five-year average for this period at 63 Bcf. This week's figures were below forecasts at 83 Bcf, prompting a rally in markets, according to data compiled by Investing.com.Total gas inventories at 2,142 Bcf are now 116 Bcf, or 6%, above the corresponding period a year ago, and 153 Bcf, or 8%, higher than the five-year average for this period.All regions reported a net injection of working gas during the week ended April 24, with South Central reporting the highest at 26 Bcf, bringing its total inventories to 905 Bcf. Balances at South Central are now 18 Bcf above the five-year average.Weather forecasts have remained bullish in recent weeks, with eastern parts of the US expected to see below-normal temperatures from May 08 to May 17, according to the National Weather Service.However, analysts at Pinebrook Energy Advisors believe this cold pattern over the coming weeks "will have less of an impact on natural gas demand for heating" as normal temperatures begin to climb as the calendar progresses through the new month.A total of 35 liquefied natural gas-carrying vessels left US ports during the week, the same as the previous week, with a total capacity of 133 Bcf, down by 1 Bcf compared to the prior week.Meanwhile, the US gas rig count increased by one from 129 the previous week to 130 in the week ending May 1, according to data from Baker Hughes (BKR) released Friday. That compares with 108 gas rigs in operation in the US a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, dropped by four to 670 from 674 the previous week.In international markets, European TTF gas prices averaged $15.41/MMBtu for the week ended April 29, $1.14/MMBtu higher than the previous week.The Japan-Korea Marker averaged $16.59/MMBtu, about $0.93/MMBtu higher than the prior week.
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Wire
Argus Adjusts Price Target on Baker Hughes to $79 From $67
Baker Hughes Company (BKR) has an average rating of overweight and mean price target of $70.80, according to analysts polled by FactSet.Price: $69.30, Change: $-0.37, Percent Change: -0.53%
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