US drillers cut oil and gas rigs for third week in a row
According to Baker Hughes ' latest report on Friday, U.S. energy firms...
According to Baker Hughes ' latest report on Friday, U.S. energy firms cut the number of oil and natural gas rigs for the third week in a row. The total rig count, a key indicator of future production, fell by two to 585 in the week ending October 4.
This drop puts the overall rig count 34 rigs, or 5.5%, lower than the same time last year. The number of oil rigs decreased by five, bringing the total to 479—their lowest level since July 19. In contrast, natural gas rigs increased by three to 102, marking their highest count since mid-July.
The rig count has significantly declined, dropping around 20% in 2023 after substantial increases of 33% in 2022 and 67% in 2021. This year's reduction has been driven by weaker oil and gas prices, rising labor and equipment costs due to inflation, and companies' focus on reducing debt and increasing shareholder returns rather than expanding production.
This reduced drilling activity is expected to lead to a slight decline in U.S. natural gas production, which is projected to fall to 103.4 billion cubic feet per day (bcfd) in 2024, down from a record high of 103.8 bcfd in 2023, according to the EIA.
Biden discourages Israel from striking Iran’s oil industry, crude posts best week in more than year
U.S. crude oil on Friday posted its biggest weekly gain in more than...
U.S. crude oil on Friday posted its biggest weekly gain in more than a year, as traders fear Israel could strike Iran’s crude facilities in retaliation for Tehran’s ballistic missile attack.
U.S benchmark West Texas Intermediate surged 9.09% this week for the biggest weekly gain since March 2023. Global benchmark Brent jumped 8.43% for the biggest weekly advance since January 2023.
Here are Friday’s closing energy prices:
West Texas Intermediate November contract: $74.38 per barrel, up 67 cents, or 0.91%. Year to date, U.S. crude oil has gained nearly 4%.
Brent December contract: $78.05 per barrel, up 43 cents, or 0.55%. Year to date, the global benchmark has risen more than 1%.
RBOB Gasoline November contract: $2.0958 per gallon, up 0.15%. Year to date, gasoline is little changed.
Natural Gas November contract: $2.854 per thousand cubic feet, down 3.91%. Year to date, gas is ahead more than 13%.
Oil prices would spike by $10 to $20 per barrel if an Israeli strike knocks out 1 million barrels per day of Iranian production over a sustained period, said Daan Struyven, head oil analyst at Goldman Sachs.
Offshore, tight oil stay competitive as breakevens climb
Rising inflation and ongoing supply chain issues are driving up the cost...
Rising inflation and ongoing supply chain issues are driving up the cost of new upstream oil projects, pushing average breakeven prices for non-OPEC developments to $47 per barrel, a 5% jump from last year, according to Rystad Energy. Onshore Middle East, offshore shelf and North American shale are the most affordable sources of new production, while oil sands stand out as the most expensive option.
Biden has discouraged Israel from attacking Iran’s oil as prices...
Biden has discouraged Israel from attacking Iran’s oil as prices rise. After inadvertently spiking oil prices Thursday by saying he was in discussions about an Israeli strike on Iran’s oil infrastructure, the president said yesterday that the Israeli government had not yet decided what to do, and, “If I were in their shoes, I’d be thinking about other alternatives than striking oil fields.” The remarks came as oil prices had their biggest gains this week since early 2023. They were also part of the first press briefing Joe Biden has attended as president, where he surprised reporters and touted the strength of the US economy.
The Supreme Court cleared the way for Biden administration rules to curb methane and mercury emissions, declining to block the EPA regulations while litigation over them proceeds.
Stellantis, the struggling parent company of Jeep and Chrysler, has sued the United Auto Workers union for threatening to strike.
The EU will slap 45% tariffs on Chinese electric vehicles, a plan that was hotly contested among its member states.
Los Angeles prosecutors said they would review the Menendez brothers’ high-profile 1996 conviction and prison sentence for murdering their parents in light of new evidence potentially pointing to abuse from their father.
U.S. stocks end higher after strong jobs report as S&P 500 ekes out weekly gain
U.S. stocks ended higher Friday after a stronger-than-expected...
U.S. stocks ended higher Friday after a stronger-than-expected jobs report, with all three major benchmarks picking up steam in late afternoon trading to eke out weekly gains.
The Dow Jones Industrial Average rose 341.16 points Friday, or 0.8%, to close at 42,352.75, notching a record high.
The S&P 500climbed 51.13 points, or 0.9%, to finish at 5,751.07.
The Nasdaq Composite rallied 219.37 points, or a sharp 1.2%, to end at 18,137.85.
For the week, the S&P 500 advanced 0.2%, while the Dow and Nasdaq each edged up 0.1%. All three major U.S. equities benchmarks booked a fourth straight week of gains.
