Oil prices slide amid relentless increase in U.S. drilling – Oil prices edged lower in European trading on Monday, giving back small overnight gains as the market weighed a relentless increase in U.S. drilling against ongoing efforts by major producers to cut output and reduce a global glut.

The U.S. West Texas Intermediate crude July contract was at $45.70 a barrel by 3:10AM ET (0710GMT), down 13 cents, or around 0.3%. It touched its lowest since May 5 at $45.20 last Thursday.

Elsewhere, Brent oil for August delivery on the ICE Futures Exchange in London declined 11 cents to $48.04 a barrel. The global benchmark sank to $47.40 late last week, a level not seen since May 5.

Oil prices suffered their third straight weekly loss last week, amid concern that the ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance the market remained in focus.

Energy services company Baker Hughes said on Friday that U.S. drillers last week added rigs for the 21st week in a row, the longest such streak on record, implying that further gains in domestic production are ahead.

The U.S. rig count rose by 8 to 741, extending a year-long drilling recovery to the highest level since April 2015.

The increase in U.S. drilling activity and shale production has mostly offset efforts by OPEC and other producers to cut output in a move to prop up the market.

Last month, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.

So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, and a relentless increase in U.S. shale oil output.

In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.

Meanwhile, investors will keep an eye out for monthly reports from the Organization of Petroleum Exporting Counties and the International Energy Agency to assess global supply and demand levels.

Elsewhere on Nymex, gasoline futures for July inched down 0.6 cents, or about 0.4%, to $1.498 a gallon, while July heating oil shed 0.1 cents to $1.429 a gallon.

Natural gas futures for July delivery dipped 2.1 cents to $3.018 per million British thermal units.


Check out our proprietary and interactive Rig Count Dashboard.

About Oklahoma Minerals Founder GIB KNIGHT

Gib Knight is a private oil and gas investor and consultant, providing clients advanced analytics and building innovative visual business intelligence solutions to visualize the results, across a broad spectrum of regulatory filings and production data in Oklahoma and Texas. He is the founder of, an online resource designed for mineral owners in Oklahoma.


The crossroads of energy information for minerals owners in Oklahoma. Where you can: See recent prices of mineral and lease transactions. Receive an offer to lease or buy your minerals.

Find relevant news stories on the most active areas, including the Scoop and Stack Plays.

Data Powered by Oseberg

Today’s E&P world is rapidly shifting towards data-driven decision making, but those decisions are only as good as the data behind them. Access Oseberg's deep, accurate, and detailed pool of insight-rich industry data with our powerful analytical and search tools and get the clearest picture of what's happening as soon as it happens.


This web site is maintained solely for the personal use of our visitors. Although we at Oklahoma Minerals have made all reasonable efforts to provide accurate information, we cannot guarantee the completeness, timeliness or accuracy of the information contained herein. Nothing in this web site contains investment advice. Any decisions based upon the information contained in this web site are the sole responsibility of the user.

Copyright © 2022

To Top
Want to figure out what your minerals are worth? Contact us today! ➡️Free Consultation