• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 20 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 6 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 days The Federal Reserve and Money...Aspects which are not widely known
  • 1 day "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 7 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 10 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 11 days Goldman Betting on Cryptocurrencies
  • 14 days Сryptocurrency predictions
Why 2023 Is Likely To See Much Higher Oil Prices

Why 2023 Is Likely To See Much Higher Oil Prices

Wall Street is overall bullish…

Goldman Sachs Slashes Oil Price Forecast By $10

Goldman Sachs Slashes Oil Price Forecast By $10

Goldman Sachs has slashed its…

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

Oil Drops As Signs Of Rising U.S. Output Offset OPEC Optimism

Oil prices were down in early Monday trade after Baker Hughes reported on Friday yet another rise in the U.S. rig count, which, coupled with a stronger dollar, was more than offsetting optimism that OPEC and non-cartel nations would be honoring their deal to cut global supply.

As of 7:04am EST, WTI Crude was down 1.78 percent at US$53.05, while Brent Crude was trading down 1.8 percent at US$56.07.

On Friday, oilfield services provider Baker Hughes reported a 7-rig increase in the first week of 2017 to the number of active oil and gas rigs in the United States, bringing the total number of active oil and gas rigs in the United States to 665, with the oil rig count up to its highest point in a year. Last week marked 11 straight weeks of oil rig increases, and 9 straight weeks of gas rig increases.

“We see the optimism surrounding OPEC and non-OPEC production cuts being counterbalanced by fears of higher U.S. crude production as the higher rig count of last Friday still weighs,” Hans van Cleef, senior energy economist at ABN Amro, commented for Reuters.

On the OPEC side, it looks like Kuwait, Saudi Arabia, Iraq, Venezuela and Angola are so far honoring the deal to curtail supply in a bid to lift oil prices. Related: Oil Price Rebound May Come Too Late For UK Oil Sector

So is apparently Russia, whose oil and gas condensate production averaged 11.1 million bpd in the week to January 8, down from the 11.247 million bpd average output in October, two sources told Reuters.

While OPEC and non-OPEC producers that had pledged cuts are thus far proving to the world and each other that they will be sticking to commitments, Nigeria and Libya are exempt from cuts and are trying to increase output. Iran - which was also given a pass from cutting production, is selling crude oil that it had kept in tankers at sea in a bid to increase market share while fellow OPEC members are cutting.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

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