OPEC+ agrees to boost output by 648,000 barrels a day in July and August
MARKETWATCH. The Organization of the Petroleum Exporting Countries and its allies agreed...
MARKETWATCH. The Organization of the Petroleum Exporting Countries and its allies agreed Thursday to boost production in July and August by 648,000 barrels a day. That exceeds the 432,000 barrel-a-day monthly increases the group has been approving in keeping with its agreement last year to unwind production cuts put in place after the onset of the COVID-19 pandemic in 2020. The move comes as Russian oil production is expected to fall sharply in response to sanctions targeting the country's energy exports, but is seen falling short of making up the gap. Oil futures moved higher following the announcement, with West Texas Intermediate crude for July delivery CL.1, 0.79%CLN22, 0.79%, the U.S. benchmark, up 94 cents, or 0.8%, at $116.20 a barrel on the New York Mercantile Exchange. August Brent crude BRN00, 0.52%, the global benchmark was up 0.7% at $117.10 a barrel on ICE Futures Europe.
Energy stocks are set to open modestly lower this morning, as a reprieve...
Energy stocks are set to open modestly lower this morning, as a reprieve in the rise in oil prices is encouraging investors to consolidate some gains and positions. Corporate news flow is fairly light, while the oil market is digesting news of the JMMC meeting that OPEC+ is “highly likely to agree to an output hike in the range of 600K bpd for July”.
Oil prices fell on Thursday on speculation that Saudi Arabia and other OPEC members may boost crude output to compensate for a drop in Russian production. The benchmarks have marched higher for several weeks as Russian exports have been squeezed by U.S. and EU sanctions against Moscow over its invasion of Ukraine, action Moscow calls a "special operation".
Natural gas futures are trading just below $9, as summer heating demand is set to pick up and the recent injection season failed to bring storage levels to historical averages.
As gas prices soar, Biden leans toward visiting Saudi Arabia
President Joe Biden is leaning towards making a visit to Saudi Arabia — a trip that...
President Joe Biden is leaning towards making a visit to Saudi Arabia — a trip that would likely bring him face-to-face with the Saudi crown prince he once shunned as a killer.
The White House is weighing a visit to Saudi Arabia that would also include a meeting of the leaders of the Gulf Cooperation Council countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) as well as Egypt, Iraq and Jordan, according to a person familiar with White House planning. The person spoke on the condition of anonymity to discuss the yet-to-be finalized plans.
It comes at a moment when overriding U.S. strategic interests in oil and security have pushed the administration to rethink the arms-length stance that Biden pledged to take with the Saudis as a candidate for the White House.
Closing Oil & Gas Prices for Wednesday, June 1, 2022
Benchmark U.S. crude oil for July delivery rose 59 cents to $115.26 a barrel Wednesday. Brent crude for...
Benchmark U.S. crude oil for July delivery rose 59 cents to $115.26 a barrel Wednesday. Brent crude for August delivery rose 69 cents to $116.29 a barrel.
Wholesale gasoline for July delivery rose 15 cents to $4.07 a gallon. July heating oil rose 20 cents to $4.14 a gallon. July natural gas rose 55 cents to $8.70 per 1,000 cubic feet.
Rystad sees Permian producing more oil than most nations
Rystad Energy predicts that Permian Basin oil production will surge by 1 million barrels per day to 5.6...
Rystad Energy predicts that Permian Basin oil production will surge by 1 million barrels per day to 5.6 million bpd this year, surpassing all oil-producing countries except Saudi Arabia and Russia, and reach 6.5 million bpd in 2023. "This trend is only likely to continue as global oil markets struggle with supply constraints and the demand for oil shows little sign of easing," says Rystad Head of Upstream Research Espen Erlingsen.
