• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 5 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 4 hours Saudi Fund Wants to Take Tesla Private?
  • 6 hours Starvation, horror in Venezuela
  • 4 hours Corporations Are Buying More Renewables Than Ever
  • 10 hours Are Trump's steel tariffs working? Seems they are!
  • 10 hours Is NAFTA dead? Or near breakthrough?
  • 11 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 8 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 6 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 45 mins CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 1 hour Film on Venezuela's staggering collapse
  • 1 min Saudi PIF In Talks To Invest In Tesla Rival Lucid
Oil Prices Fall On Significant Crude Build

Oil Prices Fall On Significant Crude Build

Oil prices fell on Wednesday…

US Shale To Increase 122,000 BPD Next Month

Midland Oil

American shale output will continue its rise in June, the Energy Information Administration said on Monday in a forecast likely to further rouse the irritation of members of the Organization of Petroleum Exporting Countries (OPEC).

U.S. shale producers will increase output by 122,000 barrels per day next month to 5.401 million bpd, with the Permian Basin in Texas and New Mexico seeing the most growth. Roughly 71,000 barrels daily of gains will come from the southern formation.

Since the end of last year, OPEC has embarked on a mission to reduce the global oil supply glut to allow barrel prices to recover. Algeria and Venezuela are desperate to see high oil prices to return as both countries stand on the brink of economic and political collapse. But high output from Nigeria and Libya—two OPEC members exempt from the output quotas—as well as the United States is jeopardizing the bloc’s efforts.

Oil prices fell last week in anticipation of flooded markets, but NOPEC Russia and OPEC Saudi Arabia announced this morning that the two countries would be extending cuts until March 2018. The rest of the bloc is expected to act similarly following a meeting in Vienna on May 25.

Drilling in the U.S. is coming back quickly– a trend that shifts leverage back in favor of oilfield services companies who are starting to hike their prices after being force to take deep cuts over the past 2.5 years. According to S&P Global Platts, oil services costs are expected to rise by about 20 percent on average this year, and data from the U.S. Bureau of Labor Statistics – reported on by Reuters– shows that drilling costs jumped by 7 percent between November and March. That is the first sustained increase in costs in over three years, and costs could continue to inch up.

By Zainab Calcuttawala 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