• 5 hours Elon Musk Goes Full Conspiracy Theorist, Blames Big Oil for Tesla's Negative Media Coverage
  • 14 hours Holiday weekend: Gas Prices Surge
  • 5 hours Several US News Sites Block EU Readers After Missing GDPR Deadline
  • 20 hours How Much Oil Could EVs Feasibly Displace by 2040?
  • 45 mins How Lousy Shale Oil Economics Will Pull Down The U.S. Economy
  • 1 day Why Alberta Will Win The War Over Trans Mountain
  • 1 day Democrats Urge Trump to ‘Stand Up to OPEC’ Amid Rising Oil Prices
  • 1 day Expected:Trump Cancels Summit With North Korea Scheduled For Next Month
  • 2 days High Oil Prices Becoming Herd Mentality
  • 23 hours $5 per gallon in Manhattan
  • 4 hours Psychological manipulation of oil prices.
  • 24 hours Trump announces more sanctions on Venezuela after Maduro Win
  • 2 days Water-Based Battery Claims Exceptional Scalability
  • 21 hours HAPPY RIG COUNT DAY!!
  • 1 day VW Just Ordered $48 Billion in Electric Car Batteries. That's About What Tesla Is Worth Right Now
  • 1 day Russia/Germany Pipeline Really A Security Threat for US?
Alt Text

How Does Oil Impact Bond Markets

Oil prices and 10Y yields…

Alt Text

Rosneft Discovers Oil Field In Iraq

Russian oil company Rosneft has…

Alt Text

Oil At Highest Level Since 2014

Brent broke $80 for the…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Brent Crude Hits New High On Soaring Demand

Eagle Ford

Brent crude hit a new high of over US$79 a barrel on data about higher demand in key markets such as China and OPEC’s bullish Monthly Oil Market Report, in which the cartel said the global overhang in oil inventories is all but gone.

The pending U.S. sanctions against Iran have also contributed to the price rise.

Data from China’s refineries showed that in April, these processed some 12.06 million barrels of crude daily, up 12 percent on the year and also the second-highest daily throughput rate on record, Reuters noted.

OPEC, for its part, estimated that the excess oil inventories in the OECD had shrunk to just 9 million barrels. This compares with 340 million barrels when OPEC, Russia, and several other producers agreed to cut production to stimulate prices.

OPEC’s success with the oil production cutting deal has been to a significant extent aided by Venezuela’s catastrophically dropping production as the country grapples with foreign exchange shortage, U.S. sanctions, and a devastating economic crisis.

On the other hand, U.S. production is growing at a pace that made traders hesitate last week after Baker Hughes reported yet another increase in drilling rigs. Yesterday, the Energy Information Administration said it expected shale oil production to hit 7.178 million barrels daily next month thanks to a record-high monthly increase of 144,000 bpd. Related: Higher Oil Prices Look Likely

However, the tailwinds for crude oil currently vastly outnumber the headwinds, so prices will likely continue upwards in the coming days, especially in light of the escalation in Israel following the move of the U.S. embassy from Tel Aviv to Jerusalem that ignited protests in Gaza, prompting an immediate military response from the IDF.

According to Reuters, over the past 12 months crude oil prices have gained 70 percent thanks to a combination of rising demand and restricted supply from the OPEC+ group. Still, the cartel’s leader Saudi Arabia and some analysts believe oil prices can rise higher still before they start hurting production.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News