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.
EVs cutting into oil's share of transportation market
The amount of oil displaced by electric vehicles will increase...
The amount of oil displaced by electric vehicles will increase from roughly 1.5 million barrels per day now to 2.5 million barrels per day in 2025 as EV adoption accelerates, according to a new report from BloombergNEF, which notes that "oil demand from passenger cars, two-wheelers, three-wheelers, and buses has already peaked." However, "[oil] prices could remain elevated and volatile" if the decline in supply outpaces demand losses, the report notes.
EQT CEO wants to help the world replace coal with LNG
EQT Corporation President and CEO Toby Rice has been engaging with government officials and energy executives...
EQT Corporation President and CEO Toby Rice has been engaging with government officials and energy executives in an attempt to garner support for his proposal to expand US liquefied natural gas export capacity by a factor of four to help curb the global rise in coal-fired generation and emissions. Rice's plan also calls for expedited permitting for pipelines and LNG facilities, the construction of hydrogen-ready pipelines, increased domestic gas production and the use of carbon capture.
Citi says oil should be around $70 as demand drops and recession looms
Brent crude oil is overvalued and should fall significantly as demand drops and recession fears loom,...
Brent crude oil is overvalued and should fall significantly as demand drops and recession fears loom, according to Citi's global head of commodity research.
"I'd say it's more in the $70 range than it is in the $120 range," Ed Morse said in an interview with Bloomberg on Tuesday. "If you look at the fair value for oil, look at the flowing curve. It's exaggerated."
Brent crude has surged more than 50% year to date after Russia's invasion of Ukraine and Western sanctions on Moscow sent energy prices soaring. On Tuesday, oil jumped to a two-month high of more than $123 a barrel after the European Union agreed to ban most Russian oil imports as part of its sixth round of sanctions.
Morse said Citi's demand expectations for oil had dropped sharply this year as fears of a recession took hold. The Wall Street giant cut its demand expectations by 1.4 million barrels.
