Fed Reverse Repo Demand Rises While US Rig Count Sees Largest Weekly Jump Since December

By / / Breaking News

  • **Demand for the Federal Reserve's overnight reverse repurchase agreement (ON RRP) facility saw a notable increase today, with 36 counterparties taking $199.298 billion. This marks a rise from the previous operation, which saw 35 bids for $193.660 billion. The uptick in usage suggests a continued abundance of liquidity in the financial system, with market participants seeking a safe short-term parking spot for their cash.

  • In the energy sector, Baker Hughes (BKR) reported a significant weekly increase in the total U.S. oil and natural gas rig count. The combined count rose by seven rigs, bringing the total to 544. This marks the largest weekly increase since December, indicating a potential shift in drilling activity within the United States.

  • Delving deeper into the Baker Hughes (BKR) data, the overall increase was primarily driven by a substantial rise in natural gas drilling. Rotary gas rigs climbed by nine to a total of 117. Conversely, rotary oil rigs experienced a slight decrease, falling by two to 422. This dynamic highlights a divergence in drilling focus, with natural gas exploration seeing renewed interest.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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