Newsletter No. 152
Good afternoon,
This week, attention in the energy sector is centered on the basics, how much is being produced, where prices are moving, and how systems are performing under demand. From gasoline supply to power reliability, these developments are steering the oil and gas conversation, along with the newest updates from King.
This Week's Headlines
- WTI Rises as Middle East Tensions Heat Up
- India Urged to Boost U.S. and Venezuelan Oil Purchases
- U.S. Rig Count Rises for Third Straight Week
- From CPA to Hedge Fund PM: Jay Hatfield’s Market Playbook
- Upcoming Mauldin Webinar: The Fed, Employment and the Direction of Inflation
- Exxon Puts Large Eagle Ford Oil Package Up for Sale
Oil and Gas News
WTI Rises as Middle East Tensions Heat Up
WTI crude oil was steady over $60 per barrel, even hovering around $65 per barrel, up more than 1% on Wednesday, as tensions between the U.S. and Iran continue to grow.
Investors are watching talks between the two countries closely. Israel’s Prime Minister is meeting with President Trump and is expected to push for tougher limits on Iran’s nuclear program and regional activities. There are also reports the U.S. may seize Iranian oil shipments, which could escalate the situation.
Even though U.S. oil inventories jumped by 13.4 million barrels last week, normally something that would push prices lower, concerns about possible conflict in the Middle East are keeping oil prices supported.
In simple terms: geopolitical risk is outweighing supply data, helping keep WTI elevated.
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India Urged to Boost U.S. and Venezuelan Oil Purchases
India’s government is encouraging its oil refineries to buy more crude oil from the United States and Venezuela, following a recent trade deal framework with the U.S. that involves lowering tariffs and shifting energy trade dynamics.
Refiners have been asked to prioritize American and Venezuelan crude when buying on the spot market, as part of efforts to diversify India’s oil supply. This comes amid increased pressure around India’s purchases of Russian oil, which have been under scrutiny in the context of the trade discussions.
However, India has not officially confirmed that it will completely stop buying Russian crude, and decisions will still be influenced by price, shipping costs, and refinery needs.
U.S. Rig Count Rises for Third Straight Week
The U.S. added 5 drilling rigs this week, bringing the total to 551. While activity is slowly increasing in 2026, the count remains 35 rigs lower than a year ago.
Texas led gains with 6 new rigs (232 total), while the Permian Basin slipped by 1 rig to 241. Gas drilling saw most of the increase, with oil activity largely steady.
Overall, drilling is trending up slightly, but still below last year’s levels.
Happening at King
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From CPA to Hedge Fund PM: Jay Hatfield’s Market Playbook
In this week's episode of The Jay Young Show, I am joined by Jay Hatfield, CEO & Portfolio Manager at Infrastructure Capital Advisors, one of the rare investors who has experienced nearly every corner of Wall Street: CPA to investment banker to hedge fund PM to real asset investor. With almost 30 years of experience investing through multiple market cycles, Jay Hatfield brings a long-term, income-focused perspective shaped by bubbles, crashes, rate shocks, and shifting investor psychology.
Watch it on LinkedIn, Rumble and YouTube (@JayRYoungOfficial).
Moves to Watch
Exxon Puts Large Eagle Ford Oil Package Up for Sale
Exxon Mobil is trying to sell a major group of oil and gas assets in South Texas, mainly in the Eagle Ford and Austin Chalk areas. With strong demand for U.S. shale properties, and fewer quality assets available, this package is expected to attract serious buyers and could sell for around $1 billion.
The deal includes about 168,000 acres and currently produces roughly 30,000 barrels of oil equivalent per day, mostly oil. Production has grown steadily over the past few years as Exxon drilled longer, more efficient wells.
Importantly, the package still has room to grow. There are around 80 undeveloped drilling locations, plus opportunities to improve older wells. The assets also come with built-in infrastructure like water systems and field facilities, making them easier for a buyer to operate.
In simple terms: Exxon is selling a large, producing South Texas oil position that still has future upside, and in today’s tight shale market, assets like this don’t come up often.
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All the best,
Jay
