Geopolitical tensions and OPEC+ cuts appear to have put a floor under oil prices, countering fears of a global economic recession
Chart of the WeekU.S. oil production continues to break records, surpassing 12 mb/d in April for the first time on a monthly basis.The soaring production gains over the last few years came overwhelmingly from Texas. Production in Texas stood just shy of 5 mb/d in April, while U.S. offshore hit nearly 2 mb/d. Texas has added 1.1 mb/d of new supply since the start of 2018.
Market MoversPioneer Natural Resources (NYSE: PXD) was cut to hold from buy by SunTrust Robinson, with its price target cut from $205 to $160 per share.ExxonMobil (NYSE: XOM) said it could restart its Baytown refinery complex this week, following a period of maintenance.Enterprise Products Partners (NYSE: EPD) plans to increase the capacity to load liquefied petroleum gas, polymer grade propylene, and crude oil from its facility on the Houston Ship Channel.
Tuesday July 9, 2019
Oil prices edged up at the start of the week due to the OPEC+ cuts and rising U.S.-Iran tension. Trade and economic concerns continue to keep prices in check, however.
Iran surpasses enrichment level. Iran said that it exceeded the 3.67 percent uranium enrichment level laid out in the 2015 nuclear deal, and…