• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 2 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Rising Middle East Risk Sparks Fear of $100 Oil

Rising Middle East Risk Sparks Fear of $100 Oil

In case of further escalation,…

Is $100 Oil Within Reach?

Is $100 Oil Within Reach?

We have a situation where…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Drilling Executive: Oil Prices Could Hit $70 This Fall

Drilling rig

WTI Crude prices may be set for a 90-percent jump to $70 a barrel by the fall as U.S. oil producers may have “over-cut” production, Dan Eberhart, chief executive of Canary Drilling Services, told Markets Insider this week.

According to the manager of the drilling firm, U.S. oil companies have curtailed production too much too fast when prices collapsed, setting the stage for a “mini-supply shock” on the U.S. oil market.  

Early on Friday, WTI Crude prices were rallying 4.38 percent to $39.05, as the market appears confident that the OPEC+ group will extend the current level of production cuts for one month after June at a meeting scheduled for Saturday.

According to Canary Drilling Services’ Eberhart, the extension will not matter much because the OPEC’s compliance with the cuts –which wasn’t perfect in May—will slip further.

“I see a case for West Texas Intermediate to approach $70 a barrel this fall,” Eberhart told Markets Insider. 

The return of curtailed U.S. production amid rising oil prices, however, could threaten the oil price rally. Another major unknown for the oil market this summer is demand.

Global oil demand has improved over the past few weeks, led by China’s demand which has rebounded to 90 percent of its pre-coronavirus levels, while tentative signs of improvement emerge in other major economies, including the United States and India, as lockdowns are eased.

The key question is how fast demand will recover to pre-crisis levels. Some analysts say never.

In the United States, gasoline demand is slowly recovering and pushing the national average gas prices higher. Since Monday, the national average for a gallon of regular gasoline has increased by two cents to $1.99—three cents higher than a week ago and 21 cents more than a month ago, according to AAA. Last week, U.S. gasoline demand grew to 7.5 million bpd from 7.3 million bpd the prior week, the latest EIA data showed.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Victor Edwards on June 06 2020 said:
    ...because there is no worldwide glut of oil, right? I have a bridge in Brooklyn I would like for you to take a look at...

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News