• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 4 hours Dutch Populists Shock the EU with Election Victory
  • 12 hours One Last Warning For The U.S. Shale Patch
  • 1 hour Venezuela Says Russian Troops Land to Service Military Equipment
  • 7 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 1 hour Read: OPEC THREATENED TO KILL US SHALE
  • 21 hours Climate change's fingerprints are on U.S. Midwest floods
  • 9 hours U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 1 day Oil Slips Further From 2019 Highs On Trade Worries
  • 1 day Telsa Sales in Europe
  • 1 day The Political Debacle: Brexit delayed
  • 18 hours Modular Nuclear Reactors
  • 9 hours European Parliament demands Nord-Stream-ii pipeline to be Stopped
  • 2 days Poll: Will Renewables Save the World?
Oilfield Services Might Not Fully Recover Till 2025

Oilfield Services Might Not Fully Recover Till 2025

The global oilfield service sector’s…

Oil Down at Open Thursday on Profit-Taking

Oil worker

Following three sessions of gains, oil prices dropped a bit Thursday, but the price drop is being credited to traders drawing off profits following earlier sessions.

The drops were not dramatic and prices remained at least close to the peaks that have been brought on by a drop in inventory in the U.S. and disruptions in supply elsewhere.

Michael Hewson, a CMC Markets analyst, commented that energy prices were still above $50 per barrel and that the momentum remained positive. He also attributed the price drops to profit-taking.

Oil prices saw a spike Wednesday. That uptick came on the heels of an EIA report that showed US crude stocks dropping to 532.5 million. It was the third fall in as many weeks.

The weaker dollar continues to bolster oil prices. The dollar has dropped down approximately 2.4 percent for the month of June, making it cheaper for countries using other currencies in terms of dollar-traded fuels.

Despite the fact that Brent has rallied six times in June, some analysts continue to contend that the rise in oil prices is “overblown”.

ANZ bank commented that the rises were “tempered by an increase in (U.S.) crude production of 10,000 barrels per day to 8.75 million barrels per day and the number of active rigs increasing by 9 to 325.”

Related: Shell Unveils New Strategy: ‘Leaner and Deeper’

Others note that $50 to $60 per barrel may indeed constitute a fair price, basing that assessment on the forward curve of Brent crude.

On Thursday morning, international Brent crude futures were trading at $52.38 - a drop of 13 cents. That price was down from an earlier high of $52.86.

U.S. crude (WTI) fell slightly from $51.67 to $51.20.

Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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