The Baker Hughes Oil Rig Count Tomorrow!

The Baker Hughes report is an indication of US oil demand and – consequently – the US economy. In explosive times, it pays to notice. [Visit our website]( [AvaTrade] A VOLATILE REACTION Baker Hughes Oil Rig Count – Friday, Aug. 30 at 17:00 GMT Over its 70 years of reporting, the Baker Hughes rig count has become a historical document for the US oil industry and – in retrospect – the US economy. And in turbulent times as are ours, the market’s reaction to every tiny jolt can be dramatic. This week, oil is being impacted by growing tensions with a highly distressed Iran, which insists on sending oil to off-limits Syria, a world economy just outside the jaws of Trump’s trade-war inflicted global recession, and continued proxy Saudi/Iran-Russia/US wars in Yemen, which commands the straits through which Gulf oil shipments flow. All these pressure prices upwards, making drilling activities more profitable. However, WTI prices have been falling steadily (albeit, double bottoming in June just above the $50 mark) since April, when Trump’s trade war erupted in full force. US drilling activity – as measured by Baker Hughes – is at an 18-month low, indicating that US demand is falling and – also perhaps – reflecting the death of US crude exports to China (down to 62kB/d in April from half a million the year before). Lately, they have been rising each time optimism is injected into US-China trade talks and falling when hopes are once again dashed. Classically, a drop in active oil wells should indicate a drop in production and an increase in prices; however, a drop in production could also be the result of a drop in demand and ensuing economic pessimism – a reason for oil prices to fall. Watch the report tomorrow, assess the reaction and trade before markets close for the weekend. [TRADE OIL]( [Facebook]( [Twitter]( [LinkedIn]( [YouTube]( [Instagram]( Trading, CFDs, Spread-betting & Options carry risk and could result in the loss of your capital AVA Trade EU Ltd is regulated by the Central Bank of Ireland (No.C53877). AVA Trade Ltd is regulated by the B.V.I Financial Services Commission. Ava Capital Markets Australia Pty Ltd is regulated by the ASIC (No.406684). Ava Capital Markets Pty is regulated by the South African Financial Services Board (FSP No.45984). Ava Trade Japan K.K. is regulated in Japan by the FSA (No.1662) and the FFAJ (No.1574). Read AvaTrade [risk disclosure]( before trading Forex, CFD’s, Spread-betting or FX Options. Forex/CFD, Spread-betting & FX Options trading involves substantial risk of loss and is not suitable for all investors. Copyright © 2007-2019 AVA Trade EU Ltd. All rights reserved. [Unsubscribe](