Markets were up mildly today. Russian officials have signaled their intent to enforce domestic oil cuts that would continue US producer’s gains this year. Gains were slightly lower than yesterday’s session as investors began to doubt the likeliness of Trump’s budget proposal passing Congress in it’s current form. The released document is almost exactly in line with expectations, with deep cuts in branches like the NPS, EPA, and oddly the Coast Guard, alongside a slashed corporate tax rate (down to 15%).
Our portfolio benefited from this market sentiment, with SeaDrill partners rising almost 6%. Their focus on future oil market performance benefited strongly from news of a continued supply cut – that means US producers will be requiring their services for the foreseeable future.