• 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
  • 4 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 3 days By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 10 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 11 days Bad news for e-cars keeps coming
  • 9 days The United States produced more crude oil than any nation, at any time.
  • 12 days RUSSIA - Turkey & India Stop Buying Russian Oil as USA Increases Crackdown on Sanctions
ING Sees $88 Brent In Q3 2024

ING Sees $88 Brent In Q3 2024

ING updated its Brent crude…

Short Term Demand Boosts Oil Market

Short Term Demand Boosts Oil Market

While there's potential for short-term…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Premium Content

U.S. Gulf, Shale Output Decline Spurs 2% Gain In Oil Prices

Permian

Plateauing U.S. output caused oil prices to see a 2 percent gain on Monday, continuing the longest streak of daily price gains after Baker Hughes reported the first decline in active U.S. rigs in 24 weeks.

Brent prices were up $0.64 or 1.31 percent at the time of this article’s writing. West Texas Intermediate barrels stood $0.75, or 1.63 percent higher, as well.

"It’s all about market sentiment," Commerzbank analyst Carsten Fritsch told Yahoo Finance. U.S. Gulf of Mexico producers saw a 100,000 barrel per day production from tropical storms and maintenance over the past two weeks, spurring eight straight days of price gains. "These... (temporary) factors outweigh the sharp increase in OPEC oil production in June... and the continued increase in Libyan and Nigerian output at least at the moment," he added.

Analysts note that the boom in active rigs in the Permian and Bakken is nearing an end, as the added production worsens the glut and puts downward pressure on already bearish prices. This makes new shale output more difficult to actualize.

"In our view there is still a significant shortfall in onshore output relative to prior market expectations," Standard Chartered wrote in a note on Monday. "We think the fall in prices has caused U.S. output growth to slow, and that revisions for May and June will confirm that supply is growing at a significantly more modest rate than the market has believed up to now."

OPEC oil output reached a 2017 high in June as Libya and Nigeria continue a production recovery despite the bloc’s efforts to ease a global supply glut, the results of a new Reuters survey shows. Saudi Arabia and Kuwait have shouldered most of the cuts to ensure the bloc sticks to its commitment to reduce production by 1.2 million barrels per day. Compliance to the deal will remain in the 90-95 range, despite the production increase this month.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Kr55 on July 03 2017 said:
    Think oil+product speculative shorts hitting an all time record (even more than early 2016 when oil was in 20's) is the main reason oil is going up. Crazy how much shorts have piled on and only got oil to mid-40's.

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