Crude Continues Decline Despite Rig Count Decrease

Crude markets have shown been largely unaffected by the Baker Hughes data showing a fall in the US rig count, with easing Middle East tension and a weak demand picture continuing to limit upside.

• Instead, crude markets have extended declines throughout the day reversing much of the yesterday’s gains as fears of disruption to Iranian oil exports due to the conflict in Israel start to abate.
• During the day, WTI has traded between $80.51/b and $82.37/b. WTI has been on a downward trend since around 15:50 GMT (11:50 ET) following a speech from Hezbollah’s leader.
• The leader of Lebanon-based and Iran-backed militant group Hezbollah, Hassan Nasrallah, has said, in his first speech since the start of the Israel-Hamas war, that "This decision to launch operation was 100% Palestinian, its owners hid it from everyone."
• US total rig count fell by 7 to 618 in the week to Oct. 27, according to Baker Hughes.
• WTI DEC 23 down -2.7% at 80.26$/bbl
• WTI-Brent down -0.08$/bbl at -4.79$/bbl
• WTI DEC 23-JAN 24 down -0.04$/bbl at 0.26$/bbl
• WTI JAN 24-FEB 24 down -0.08$/bbl at 0.38$/bbl
• WTI DEC 23-DEC 24 down -0.6$/bbl at 4.81$/bbl