Crude Oil: The federal government’s EIA report revealed that crude inventories fell...
Crude Oil: The federal government’s EIA report revealed that crude inventories fell 1.9 million barrels compared to expectations of a 700,000-barrel decrease per the analysts surveyed by S&P Global Platts. Continued strength in refinery demand accounted for the larger-than-expected stockpile draw with the world’s biggest oil consumer even as exports fell and U.S. production remained robust. Total domestic stocks now stand at 411.6 million barrels — 17.4% less than the year-ago figure and 13% lower than the five-year average.
The latest report also showed that supplies at the Cushing terminal (the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange) decreased 585,000 barrels to 22.2 million barrels.
Meanwhile, the crude supply cover was down from 27.1 days in the previous week to 27 days. In the year-ago period, the supply cover was 40.5 days.
On top of that, a reading of inflation came in at its highest level in about 40-years, underscoring the surge in prices in everything from dry commodities to crude oilCL.1, -2.79%.
The Dow Jones Industrial AverageDJIA, -0.34% closed down 0.3%, S&P 500 index SPX, -0.43% closed down 0.4% and the Nasdaq Composite IndexCOMP, -0.95% ended the session off by about 1%.
WildFire Energy Acquires East Texas Eagle Ford Operator MD America Energy
WildFire Energy recently closed on the acquisition of MD America Energy (MDAE),...
WildFire Energy recently closed on the acquisition of MD America Energy (MDAE), adding to the Houston-based independent E&P’s growing position in the Eagle Ford Shale.
MDAE is a Fort Worth, Texas-based E&P company with approximately 45,000 net acres, 200 operated wells and 3,200 boe/d (85% liquids) of production in the East Texas Eagle Ford. The company completed a financial restructuring and emerged from voluntary Chapter 11 protection in December 2020.
The deal follows WildFire’s successful acquisition of private Eagle Ford operator Hawkwood Energy LLC for $650 million in August 2021 marking WildFire’s entry into the South Texas shale play. The financial terms of the MDAE transaction were not disclosed.
