EIA reports drop in crude oil inventories of 8MM BO
Crude inventories fell by 8 million barrels in the week ended April 15 to 413.7 million barrels, compared with analysts’ expectations in a Reuters poll for a 2.5 million-barrel rise.
That was driven by a surge in exports, which rose to 4.3 million barrels per day in the most recent week, the most since March 2020, while imports fell to their lowest since April 2021. This is a reflection of worldwide demand for crude as Russian exports have fallen since its invasion of Ukraine in February.
Those exports offset an injection of 4.7 million barrels from U.S. strategic reserves as part of the White House’s efforts to lower fuel prices overall.
Shrinking pipeline space could weigh on Permian output
The pickup in oilfield activity indicates that Permian Basin natural gas production...
The pickup in oilfield activity indicates that Permian Basin natural gas production could climb to 17 billion cubic feet per day in late 2023, but any further growth will likely be constrained by a lack of capacity on long-haul gas pipelines, according to an analysis by S&P Global Commodity Insights. Permian gas output has averaged 13.8 Bcf/d this year through mid-April and could grow by 2 Bcf/d in 2022.
Empire boosts North Dakota assets with acquisition closing
Tulsa’s Empire Petroleum, an oil and gas company with current producing assets in...
Tulsa’s Empire Petroleum, an oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico, announced that it has closed the acquisition of nearly 2,500 acres in oil and natural gas assets in northern and western North Dakota.
The operated and non-operated assets are in the Landa Madison and Landa West Madison Units in Bottineau County, North Dakota and the Birdbear Area in Golden Valley and Billings County, North Dakota.
Energy stocks have opened higher, supported by rising oil and natural gas prices, strong broader index futures, and continued expectations of improving fundamentals, cash flow generation and operational efficiencies across the sector. Earnings across the sector continue to pour in, while a handful of analyst rating changes will steer some trading in integrated and E&Ps.
Oil prices rose on Thursday amid concerns about supply as the European Union (EU) mulls a potential ban on Russian oil imports days after diminished supplies from Libya rocked the market. Analysts said market volatility is likely to pick up again soon, with the EU still weighing a ban on Russian oil for its invasion of Ukraine, which Moscow calls a "special military operation". Libya, a member of OPEC, on Wednesday said the country was losing more than 550,000 barrels per day of oil output due to blockades at major fields and export terminals.
Natural gas futures are higher by 5 cents, trading right around $7.00. Weekly inventory data due out later this morning expects a build of 31 bcf against the 5-year average of +42 bcf.
Crude oil prices were mixed in Wednesday’s trading as benchmark US prices managed a slight increase...
Crude oil prices were mixed in Wednesday’s trading as benchmark US prices managed a slight increase while European prices fell.
US prices initially responded with an increase after the U.S. Energy Information Administration reported a crude oil inventory draw of 8 million barrels for the week to April 15.
West Texas Intermediate crude for May delivery went up 19 cents to close at $102.75 a barrel in trading on the New York Mercantile Exchange.
Global benchmark Brent crude for June delivery slipped 45 cents to finish at $106.80 a barrel on ICE Futures Europe.
May natural gas dropped 24 cents and closed at $6.95 per 1,000 cubic feet.
