• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 hours U.S. Presidential Elections Status - Electoral Votes
  • 20 hours Evergrande is going Belly Up.
  • 2 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 23 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 3 days World’s Biggest Battery In California Overheats, Shuts Down
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 2 days Ten Years of Plunging Solar Prices
  • 2 days Extraction of gasoline from crude oil.
  • 4 days The coming Cyber Attack
  • 4 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 4 days Ozone layer destruction driving global warming
  • 4 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Outlook For Oil Looks Bleak, Prices Hit 7-Month Low

Crude oil started the week with a loss, which may be extended today as U.S. shale drillers continue to add rigs, and Libya and Nigeria ramp up production, undermining their fellow OPEC members’ efforts to reduce output and support prices. Oil prices are now at a 7-month low.

Oil prices were pressured when last Friday, Baker Hughes reported the 22nd week in a row that US drillers have added rigs – a record-long streak despite prices falling by 15 percent since late May, when OPEC and Russia announced the extension of their oil output cut deal.

An addition blow came on Libya’s announcement that its crude oil production has hit 885,000 bpd after the National Oil Corporation struck an interim agreement with German Wintershall, which led to the unblocking of some 160,000 bpd in daily production, shuttered during a dispute between the two. Indifferent to OPEC’s efforts to curb the glut to push up prices, Libya is eager to raise its production as quickly as possible, eyeing 1 million bpd by the end of July.

Meanwhile, cargo tracking updates from energy data provider Kpler revealed that global crude oil floating storage had hit the highest level since the start of 2017, at an average of 102 million barrels over the ten-day period to June 16. The amount of crude in floating storage increased the most in the North Sea by some 32 percent, in Singapore by 23 percent, and in Iran by around 16 percent. Related: Oil Sands Output Growth Second Only To Shale

An additional factor driving prices down this week is the expiry of the July futures for West Texas Intermediate today, according to Reuters, as last Friday saw 70,000 contracts outstanding. This means 70 million barrels of WTI would have to go into the Cushing storage after the expiration of the contract. There are only few traders who would want to physically buy crude, so the difficult task of selling the 70,000 contracts in two days added to the pressure on WTI.

At 6:35 am EDT Brent crude was trading down US$46.15 a barrel and WTI was at US$43.68.

By Irina Slav 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