- To see more AEGIS updates on oil and gas markets’ TLC components, please see AEGIS Logical Hedge – Week of July 12, 2021.
- Oil futures are lower this morning, erasing most of the gains obtained on Friday’s 2% rally
-
- Both an uncertain OPEC+ alliance and a highly infectious Delta variant coronavirus weigh on the minds of traders
- The U.S. oil rig count stayed flat in major basins last week (Baker Hughes)
- The Permian Basin remained at 237 active rigs, up 112 from a year ago
- Permian rigs are still below the 400 active rigs running in March 2020, before the steep drop off due to Covid-19
- All regions gained two last week to stand at 378 total land oil rigs
- Money managers decreased their bullish Brent and WTI oil bets for the reporting period ending July 6 by 43,866 combined net-long positions to 655,601 (CFTC, ICE, Bloomberg)
- The net-long position was the least bullish in five weeks
- AEGIS notes that spec interest can exacerbate moves up or down in the crude market on major news