The game has changed: Offshore oil-drilling contractors, who last year were able to charge record rates for their vessels, are now under pressure to scrap old rigs at an unprecedented pace. As FuelFix.com reports, the recent five-year low in oil prices is threatening an industry already grappling with a flood of new vessels and weakening demand. More than 200 new rigs are scheduled to be delivered in the next six years. That’s a 25% jump from the number currently under contract. To cope, many rig owners will try to keep revenue up by culling older vessels to balance supply and demand. Read the full story.
The downlow: The number of Americans applying for unemployment benefits has reached its lowest level in seven weeks, a sign that the U.S. economy and job market are steadily improving. The Labor Department says applications for unemployment benefits dropped 9,000 last week to a seasonally adjusted 280,000. The four-week average, a less volatile measure, declined 8,500 to 290,250. That average has plunged 16% in the past 12 months. USA Today has the full story.
At the closing bell: U.S. stocks closed flat in a short session today as investors found few reasons to push major indexes to their sixth straight day of gains despite strength in biotechs and bullish labor market data. Reuters reports while both the S&P 500 and Dow touched intraday records, and the Dow closed at a slight record, the day’s moves were slight and volume was light with many market participants already out for the Christmas holiday. In a session that ended three hours early, about 2.5 billion shares traded on all U.S. platforms, according to BATS exchange data, well below the month-to-date average of 7.66 billion. The Dow closed at 18,030.27. Markets will reopen Friday. Read the full story.
Editor’s note: In observance of the Christmas holiday, Daily Report will not be published on Thursday, Dec. 25, or Friday, Dec. 26; it will return on Monday, Dec. 29. Have a safe and happy holiday weekend.
