Tag Archives: News

Saudi Arabia is likely to increase the price for its oil bound for Asia in July, a Reuters survey of five refinery sources showed on Monday. This is the second consecutive month for oil price hikes in Saudi Arabia, which come on the back of reduced supply out of the Middle East region due to the OPEC+ cuts.The pricing of Saudi crude, typically released around the fifth of each month, generally sets the trend for the pricing for Asia of other Gulf oil producers such as Kuwait, Iraq, and Iran....

Two months ago, Russia said no to Saudi Arabia's proposal for deeper oil production cuts. It was enough to start a price war that, coinciding with the Covid-19 pandemic, wiped out billions in oil revenues for both Russia and Saudi Arabia while forcing them to enact even deeper cuts than previously discussed.Some say the price war was never about Saudi Arabia and Russia. They say it was about U.S. shale. If that is accurate, what happens when the U.S. shale patch regains enough strength to...

Baker Hughes reported on Friday that the number of oil and gas rigs in the US fell again this week by 21, falling to 318, with the total oil and gas rigs sitting at 665 fewer than this time last year—a more than 67% drop off in a single year.The number of oil rigs decreased for the week by 21 rigs, according to Baker Hughes data, bringing the total to 237—a 560-rig loss year over year. It is the fewest number of active oil rigs in play since mid-2009.The total number of active gas rigs in the...

The OPEC+ coalition appears determined to ease the global oil glut and lift the oil prices that had cratered in April because of OPEC+ wrangling and crashing global demand in the pandemic.Oil prices have rallied since the start of the new OPEC+ cuts. These cuts, along with curtailments in North America, have combined with improved global oil demand and the new notion that the worst of the demand collapse is likely behind us, to instill confidence in the market that it is now heading for a...

West Texas Intermediate has been on a roll, rising above $30 a barrel last week for the first time in two months. This, however, may be about to end.The number of active drilling rigs in the United States has been falling for nine weeks straight and is now 60 percent lower than it was in late March, Reuters' John Kemp said in his weekly column on prices. That's when hedge funds began scooping up WTI contracts, Kemp noted, accurately predicting that the price level at the time was...

Oil prices have rallied significantly, rising $10 in two weeks as markets are increasingly convinced that global demand for crude is picking up once again.Deep output cuts and the reopening of some of the largest economies in the world have brightened the outlook for oil, but many analysts are now beginning to question whether this rally isn’t already overdone. So why are oil prices still rocketing as analysts warn of ballooning inventories and continued weak demand for aviation fuel?Looking...

The Trump administration claims that the U.S. is “transitioning to greatness,” and that energy companies are going to see “massive gains.” U.S. Secretary of Energy Dan Brouillette says there is “stability” in the oil market, and that economic activity will “explode” on the other side of the pandemic.Meanwhile, back in reality, U.S. oil production continues to decline as drillers shut in wells and cut back spending. Output has already declined by 1.1 million barrels per day (mb/d), and more...

Oil prices rose early on Tuesday after OPEC's Middle East heavyweights pledged additional cuts, instilling hopes in the market that further production reductions could help accelerate the drawdown of the enormous oil oversupply.As of 10.38 a.m. EDT on Tuesday, WTI Crude was surging 5.05 percent to $25.36, and Brent Crude was up 1.62 percent on the day at $30.12.On Monday, the world's top oil exporter and OPEC leader, Saudi Arabia, said it would cut oil production by an additional 1 million...

Oil prices turned higher on Monday, erasing earlier losses after the world’s top oil exporter and OPEC leader, Saudi Arabia, said it would cut oil production by an additional 1 million barrels per day (bpd) on top of its promised cuts as part of the OPEC+ production cut deal.As of 8:43 a.m. EDT on Monday, WTI Crude was up 2.02 percent at $25.18, and Brent Crude was trading up 0.97 percent on the day to $31.28.Oil prices began Monday’s trading session in the red as the market began to fear...

David Economist and economic historian with an interest in credit practices and exchange, natural disasters and disruptions to economic activity, as well as fiscal and monetary policy with forecasting implications. Husband, father, Cubs fan. View all posts by David