• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 hour Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 5 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 36 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 10 hours Middle East on brink: Oil tankers attacked off Oman
  • 4 hours Never Knew Gasoline Prices were this important!
  • 1 hour Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 3 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 21 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 20 hours Emmissions up, renewables nowhere
  • 20 hours Britain makes it almost 12 days with NO COAL
  • 21 hours Only one country is contemplating destroying its own resource sector: Canada
  • 2 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 4 hours We Are Better Than This
Alt Text

OPEC’s Struggle To Avoid $40 Oil

Saudi Arabia cannot afford to…

Alt Text

Oil Resilient Despite Trade Talk Failure

Oil prices fell and quickly…

Alt Text

Oil Just Had Its Worst Run Since 2008

Oil prices have entered bear…

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

Trending Discussions

Oil Prices Spiral Lower On Signs Of Strong U.S. Oil Recovery

Oil traded slightly lower early on Monday, as signals that the U.S. crude oil output is continuously recovering mostly outweighed signs that OPEC is largely sticking to its supply-cut deal.

As of 10:00 AM (EST) on Monday, WTI Crude was down 0.75 percent at US$52.77, while Brent Crude was trading down 0.65 percent at US$55.16.

On Friday, the weekly report by oilfield services provider Baker Hughes showed that the number of active oil and gas rigs in the United States increased by 18 for a total of 712 active rigs, which was 93 rigs above the rig count a year ago. Most of last week’s gains were oil rig gains, which were up 15, from 551 the previous week to 566 last week. As of Friday, the number of active oil rigs in the United States was 68 more than the same week last year. Drillers are still adding rigs to the Permian basin at record paces. After a 10-rig gain last week alone, the Permian now has 291 oil and gas rigs—109 rigs more than the same week last year.

The rising activity across the U.S. sent oil prices lower on Friday and early on Monday prices were still struggling to find a firm direction. Related: Fundamentals Be Damned – Oil Price Correction Likely

According to consultancy Petro-Logistics, which tracks OPEC supply, the cartel’s oil output would drop by 900,000 bpd in January. OPEC has pledged to cut total production by 1.2 million bpd over the first half of this year, and is being joined by non-OPEC producers that have promised to cut another 558,000 bpd.

“OPEC supply is on track to decrease by 900,000 bpd in January, suggesting a high level of compliance thus far into the production curtailment agreement,” Reuters quoted Petro-Logistics CEO Daniel Gerber as saying in an e-mail.

Other analysts were not so positive about the level of compliance, and Tamas Varga, analyst with PVM Oil Associates in London, told Reuters today that Petro-Logistics’ estimate was “not very encouraging” since it suggests that OPEC has achieved just 75 percent of its supply-cut target.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Sandra on January 30 2017 said:
    So, shale is recovering for recovering of oil prices as consequence of OPEC cuts. Prices go down because shale recovered. Shale is going down because its recovering plummeted the prices! It doesn't make sense to me. So, if prices continuing yo goind down, shale will close business again?
  • Dan on January 30 2017 said:
    @sandra whats going on is oil deflation. The market hasn't balanced out yet. But with the US expecting to complete the oil pipelines expect the price of oil to drop, causing more rigs to shut down. The reason why we didn't complete the pipes in the first place had nothing to do with protests, the reason was bc of deflationary pressures on the oil market which caused some companies to close up shop and open up when oil prices recovered. It's not worth it to keep investing money in oil when it's below $30, hence shutting down rigs. US companies will continue to lose money in the oil game. Iran can profit on $10 a barrel thats less than half our costs if countries in the middle east start to become threatened by the US they will continue to outproduce and try to hit our economy with deflation again.

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News