Crude Oil & Natural Gas Pricing: May’s average West Texas Intermediate (WTI) crude oil price per barrel decreased 6% month on month (m/m). The WTI is up 12% year on year (y/y), coming in at $80.12 / barrel in May 2024 vs. $71.58 / barrel in May 2023.

Currency Report: The trade-weighted U.S. Broad Dollar Index posted a reading of 122.244 in May, down 0.22% m/m, reversing trend after increasing last month. This index value is up 1.99% on a year on year (y/y) basis. Month over month, we saw the Brazilian real, Canadian dollar, Chinese yuan, Mexican peso, and South Korean won strengthen vs. the USD in May.

Employment by Industry (U.S.): In May 2024, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 158.5 million (M) – an increase of 272,000 (+0.2%) month on month (m/m). When compared to May 2023, total employment is up by 1.8% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest monthly gain in the construction of buildings sector with a growth of 0.3% m/m.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending May 31st was 74 oil and 54 gas (totaling 128). In percentage terms, on a month on month (m/m) basis, oil rigs were up 23.3% and gas down 10.0%. On a year on year (y/y) comparison, rigs were up 45.1% for oil and up 17.4% for gas. The combined figure for y/y was +32.0% or +31 rigs.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending May 31st was 496 oil and 100 gas (totaling 596). In percentage terms, on a month on month (m/m) basis, oil rigs were down 0.6% and gas down 2.1%. On a year on year (y/y) comparison, rigs were down 10.6% for oil and down 27.0% for gas. The combined figure for y/y was -13.8%, or -96 rigs.

Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand increased 0.5% in April 2024 (seasonally adjusted), after decreasing 0.1% in March. The index for final demand goods decreased 0.4% in April, after decreasing 0.2% in March, while the index for final demand services moved up 0.6%, the largest rise since July 2023. A 3.9-percent advance in the index for portfolio management was a major factor in the April increase in prices for final demand services.