All articles tagged with #production levels
U.S. crude oil experienced its worst month since November, dropping 6% in May, ahead of an OPEC+ meeting to review production levels. Global benchmark Brent also fell 7.1%. Despite weak gasoline demand and various global factors affecting oil demand, OPEC+ is expected to maintain current output cuts.
The natural gas market is facing oversupply due to high production levels, mild weather reducing heating demand, and elevated gas inventories. Prices have been in an oversold state, with futures declining significantly. The market outlook remains bearish due to persistent mild weather, robust production, and high inventory levels. It is expected that natural gas prices will continue to be low, with potential brief and restrained price increases. Traders should monitor production trends and inventory levels, as the market indicates that the peak demand season for winter is over.
The number of active drilling rigs in the United States has dropped to a 19-month low, with a total rig count of 630, according to data from Baker Hughes. This marks a loss of 149 active drilling rigs so far this year and a decrease of 445 rigs compared to the beginning of 2019. The number of oil rigs fell by 8 to 507, while gas rigs fell by 3 to 118. However, crude oil production levels remain high at 12.9 million bpd, up 800,000 bpd from a year ago.
OPEC and non-OPEC Participating Countries have decided to adjust the level of overall crude oil production to 40.46 mb/d, starting from January 2024 until December 2024, and reaffirm the Framework of the Declaration of Cooperation. The Joint Ministerial Monitoring Committee (JMMC) will closely review global oil market conditions, oil production levels, and the level of conformity with the DoC and this Statement, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC is to be held every two months, and the OPEC and non-OPEC Ministerial Meeting (ONOMM) every six months in Vienna.