• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 20 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Starvation, horror in Venezuela
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 15 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 15 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 8 mins Corporations Are Buying More Renewables Than Ever
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 8 hours China goes against US natural gas
  • 9 hours Why hydrogen economics does not work
Alt Text

Can U.S. Shale Stop A Global Oil Supply Crisis?

U.S. shale is often overlooked…

Alt Text

Cracks In Global Economy Weigh On Oil Markets

Oil prices fell this week…

Alt Text

Is Mexico Set To Boost Oil Output?

Mexico’s president-elect is determined to…

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

Record U.S. Oil Exports Weigh On Oil Prices

Oil Guy

West Texas Intermediate briefly slumped below US$50 after a brief rally, as EIA data about U.S. crude oil exports showed these had hit a record-high of 1.98 million bpd. This is the highest weekly average since exports were once again allowed, after a four-decade ban. Last week’s figure also beat the previous record set by exporters, which was hit in the previous week, at 1.5 million bpd.

Bloomberg noted that it was oversupply thanks to Harvey that drove the higher exports, and it was also to blame for the current decline in WTI prices and the growth of its discount to Brent. While the combination of the glut—created by refinery shutdowns and the low price resulting from this glut—increased the appeal of U.S. crude for foreign buyers, this state of affairs is not going to last long, according to analysts.

One analyst, John Auers from Dallas-based Turner Mason & Co, said that “This big arbitrage has incentivized exports. As refiners return, the WTI-Brent spread will narrow. Gulf Coast demand recovering from the storm will mean less domestic crude will leave the U.S.”

Indeed, refiners are returning to normal operation before the maintenance season shutdowns, with the EIA also saying in its Weekly Petroleum Status Report that crude oil inventories fell by an impressive 6 million barrels in the week to September 29, versus analyst expectations ranging between a draw of 3 million barrels to a build of 2.7 million barrels.

Related: What Really Killed The Oil Price Rally

The effect of the inventory draw on prices, however, was limited by the export figures and by the resumption of production at Libya’s largest field, Sharara, after a two-day outage. Reports of higher OPEC production in September are also holding back prices and limiting the positive effect of statements such as Russian President Vladimir Putin’s suggestion yesterday that the OPEC/non-OPEC output cut agreement could be extended until the end of next year.

Limited or not, the positive effect was visible in the latest intraday price developments. At the time of writing, WTI traded at US$49.99 a barrel, with Brent crude at US$55.92.

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