Oil prices eased on Thursday, dragged down by rising output, although strong demand and a drop in U.S. fuel inventories provided the market with some support. Brent crude futures LCOc1, the international benchmark for oil prices, were at $76.46 per barrel at 0046 GMT, down 28 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $66.58 a barrel, down 6 cents from their last settlement. Prices were pulled down by another rise in U.S. oil production C-OUT-T-EIA, which hit a weekly record of 10.9 million barrels per day (bpd) last week, according to the Energy Information Administration (EIA) on Wednesday. U.S. crude output has risen by almost 30 percent in the last two years, and it is now close to top global producer Russia, which produced 11.1 million bpd overall in the first two weeks of June. But the rising output came amid strong demand, which traders said prevented crude prices from falling further. U.S. consumption of gasoline … [Read more...] about News.Az — Your Window to the RegionOil prices fall as U.S. crude production hits another record
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By April 30, 2018, 2:44 PM EDT Oil drillers are working extra hard with crude prices rising near $70 a barrel.Texas oil production jumped to 4.01 million barrels a day in February, almost 21 percent higher from a year earlier, according to the Energy Information Administration, the highest in EIA data since 1981. That helped push total U.S. crude output in February up 2.6 percent to a fresh record of 10.3 million."Growth in U.S. oil production is driven by Texas and the Permian Basin," said Elisabeth Murphy, an analyst with Wakefield, Massachusetts-based ESAI Energy LLC. "It’s really booming."Production from the region started to accelerate in the fourth quarter of last year, and its growing faster than previously expected, she said. "And all this growth is now trying to get to the U.S. Gulf Coast for export."The rising supply has already filled up available pipeline capacity, with no new pipes or expansions expected to start until the second quarter. Until then West … [Read more...] about Texas Oil Production Climbs to All-Time High
By Trend Oil held near its highest in nearly three years on Wednesday, supported by political tension in the Middle East, although evidence of rising U.S. crude supply acted as a counterbalance, Reuters reports. Brent crude has gained 5.7 percent this week, rising to $71.34 a barrel on Tuesday, the highest since late 2014, although the price has since fallen back and was $70.98 a barrel by 0907 GMT LCOc1, down 6 cents. U.S. crude futures CLc1 were at $65.55 a barrel, up 4 cents on the day. The United States and its allies are considering air strikes against Syrian President Bashar al-Assad’s forces following a suspected poison gas attack last weekend. Pan-European air traffic control agency Eurocontrol said late on Tuesday that air-to-ground and/or cruise missiles could be used within the next 72 hours, warning of intermittent disruption of radio navigation equipment. Syria is not a significant oil producer, but any sign of conflict in the region tends to … [Read more...] about Oil hovers near 2014 peak as geopolitics vie with U.S. supply
The price differential between the two most important crude oil benchmarks is widening again, a reflection of a divergence in the supply fundamentals between the U.S. and the rest of the world. At the beginning of 2017, WTI and Brent traded closely, with just a slim price differential. The spread blew out in late summer after Hurricane Harvey, which devastated the U.S. Gulf Coast and put refineries and ports out of business for several weeks. That led to a buildup of crude oil along the Gulf Coast because it had nowhere to go, resulting in a temporary glut that pushed down the WTI benchmark relative to Brent. However, earlier this year, the gap narrowed sharply. The oil market continued to tighten, despite financial volatility. Also, inventories in the U.S. fell significantly in the latter part of 2017, taking away some of the surplus that had dragged down U.S. oil prices. Another reason for the shrinking price differential was because some additional pipeline capacity took oil away … [Read more...] about Why Is U.S. Oil So Cheap?
By April 10, 2018, 11:00 AM EDT U.S. oil and gas producers expect their borrowing ability to increase over the next few months leaving them open to invest in new shale assets, particularly the Eagle Ford in Texas, a survey said.More than 80 percent of respondents to a survey by Haynes and Boone LLP said their borrowing bases, or credit availability backed by collateral, will likely increase as banks conduct their biannual reviews, the law firm said Tuesday. That may benefit the Eagle Ford and nearby Austin Chalk as the “next big play,” the study said.The Eagle Ford is already an established shale play, generating about 12 percent of the U.S.’s daily oil, but it’s been receiving more attention of late. While the formation produces only about a third of the oil from the nearby Permian Basin, the country’s most prolific field, the south Texas field is closer to the Gulf Coast’s network of refineries and pipelines and acreage is typically … [Read more...] about U.S. Oil Debt Eases Meaning Producers Target Next Big Shale Play