• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 4 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 3 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 2 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 2 days Modest drop in oil price: SPRs vs US crude inventory build
  • 3 days 2019 - Attack on Saudi Oil Facilities.
  • 3 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 4 days Ukrainian Maidan after 8 years
  • 5 days Peak oil - demand vs production
  • 5 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 5 days NordStream2
  • 6 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
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

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

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