All articles tagged with #crude oil production
Oil prices retreated as OPEC+ members agreed to voluntary cuts starting in January, with each member country announcing their own cuts instead of the group as a whole. Brazil also announced its decision to join OPEC+ effective in January. The total voluntary cuts for the first quarter amount to 2.184 million barrels per day (bpd).
The total number of active drilling rigs in the United States fell by 7 this week, with the number of active oil rigs plunging to their lowest level since January 2022. The total rig count is now 457 fewer than at the beginning of 2019. Crude oil production levels in the United States remained steady at 13.2 million bpd, the highest ever recorded.
The total number of active drilling rigs in the US decreased by 4 this week, marking the second consecutive week of decline. Oil rigs fell by 5, while gas rigs saw an increase of 2. The Permian Basin and Eagle Ford also experienced fluctuations in their rig counts. Despite the decrease in rig count, crude oil production in the US remained steady at 12.9 million bpd. However, WTI and Brent benchmarks observed a drop in trading prices compared to the previous week.
According to a survey by Bloomberg, OPEC's crude oil production increased by 40,000 barrels per day (bpd) in August, with Saudi Arabia's output falling by 170,000 bpd but offset by increased production from Nigeria and Iran. The group produced 27.82 million bpd in August. Analysts expect Saudi Arabia to extend its 1 million bpd supply cut into October, despite crude oil prices reaching 2023 highs. Russia announced a new deal with OPEC regarding crude oil supply volumes. A Reuters survey estimated that OPEC's total production rose by 220,000 bpd in August. The OPEC+ group is set to hold a meeting on October 4.
Crude oil prices rose as Hurricane Idalia approached Florida, posing a threat to oil production in the Gulf of Mexico.
Oil prices slipped as Libya resumed production, ending a shutdown at two oilfields, while concerns grew over China's economic recovery. Brent crude futures fell 0.7% to $79.30 a barrel, and U.S. West Texas Intermediate crude dropped 0.7% to $74.90 a barrel. The resumption of Libyan oil production and the release of economic data from China have contributed to the decline in oil prices. Additionally, Russia is expected to reduce oil exports from western ports next month, aligning with its commitment to supply cuts alongside Saudi Arabia. Traders are also awaiting economic data from China, the UK, and Japan, which will influence the decisions of central banks and potentially impact oil demand.
Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, has warned market speculators to "watch out" ahead of the next OPEC+ meeting on June 4. He has previously criticized oil price speculators looking to profit off predicting the output decisions of OPEC+. Several members of the OPEC+ alliance have independently announced they would cut their crude oil production by a combined 1.6 million barrels per day, which briefly boosted prices. However, crude prices have since been depressed due to banking turmoil, recessionary signals, and a slower-than-expected Beijing reopening. Market watchers are now questioning whether OPEC+ will move toward another production decline to crutch prices.
The total number of active drilling rigs in the US fell by 11 this week, with the total rig count falling to 720, 8 rigs below this time last year, marking the first year-over-year loss since April 2021. The decline was entirely attributed to oil rigs, which fell by 11 to 575. The rig count in the Permian Basin fell by 4. Crude oil production levels in the US fell in the week ending May 12, from 12.3 million bpd to 12.2 million bpd. The WTI benchmark was trading down $0.28 (-0.39%) on the day at $71.58.