As U.S. market participants started a new week they found Yuan pegged to basically the same level to the U.S. Dollar as it was last week Friday.
The most interesting thing in the oil patch to me is the rig count continues to be increasing week over week. Baker Hughes (BHI, quote) has now reported its 4th consecutive week that the company has increased the number of rigs pumping oil.
Now if you are scratching your head on why are so many rigs coming online…Well it’s very likely the in the anticipating (or is it the industries way to force things) the U.S. will lift the a 40 year ban of U.S. Crude Oil exports?
Bloomberg is reporting the U.S. Commerce Department approved exports to Mexico with a 1 year oil swap agreement. This is the biggest step to date that can lead to the U.S. Commerce Department to drop or at least suspend the 40 year ban allowing U.S. Crude Oil to be exported outside of the U.S.
If the U.S. begins to export its abounded oil supply to the global market…this will amplify the amount of oil global market resulting even a further drop in price.
Add in Iran’s future ability to export oil once the sanctions are lifted we could be looking at an additional 3 million barrels a day and Iran has expressed it would like to export even more.