U.S. Energy Secretary Pushes Back on the EIA's Oil Decline Narrative
Energy Secretary Chris Wright does not expect U.S. crude oil production...
Energy Secretary Chris Wright does not expect U.S. crude oil production to decline in 2026, although the Energy Information Administration forecast such a development.
“That is a projection — we don’t know what’s going to happen next year,” Wright told Bloomberg in an interview. “We have seen weak prices for a few months, and if prices are too low for an economic incentive, you’ll see some drilling reduction on the margin. I think it’s unlikely you’ll see enough reduction actually to see a decline in production next year.”
The Energy Information Administration said earlier this week it expected oil production in the U.S. to decline from 13.5 million barrels daily in the second quarter of this year to 13.3 million barrels daily in 2026 as shale oil peaks. The authority cited weak oil prices as one reason for the expected decline. At the same time, some industry executives have pointed to the exhaustion of low-cost shale deposits as a driver of the potential future decline.
The most vulnerable players in the shale patch are smaller independents. Supermajors such as Exxon, Chevron, and ConocoPhillips are in a business-as-usual mode, yet some of them have already said that the peak in U.S. oil production is being accelerated and could come sooner than previously expected.
Analysts Expect Long-Term Rise in NatGas Prices by YE25
Henry Hub prices will likely hang around $4/MMBtu for much of 2025 and...
Henry Hub prices will likely hang around $4/MMBtu for much of 2025 and then steadily rise through the end of the decade, according to a market model presented by RBAC Inc. during a June 11 seminar.
Bethel King, RBAC's senior director of market analysis, said the price will respond to ongoing foundational changes in the marketplace, including regional shifts in supply and demand and the steady growth of the LNG market.
RBAC provides energy market simulation platforms. Customers can set parameters and then see how the programs model the circumstances across the supply chain and natural gas markets. During the seminar, the company’s staff analysts gave their takes on the future of the gas market.
The Henry Hub front-month futures price was $3.52/MMBtu in the afternoon of June 11. The price has remained below $4 since April following the White House declaration of tariffs.
However, King said the price is likely to rise because of different factors in the short, medium, and long term.
Trump says China trade deal that includes rare earths “is done.”
While the full details of the framework of a deal...
While the full details of the framework of a deal reached in London this week to deescalate trade tensions between the US and China haven’t been made public, President Trump posted on Truth Social that it would include China easing restrictions on exports of the rare earth minerals and magnets US manufacturers need “UP FRONT.” The Wall Street Journal reports that this easing will only last six months. Trump’s post also said that tariffs on China would be at 55%, which appears to include the 10% rate Trump has put on all imports, the 20% duty Trump recently added over fentanyl trafficking, and the ~25% tariffs that remain on China from Trump’s first term. Meanwhile, he said China will set a 10% levy on US goods. He also said the deal would allow Chinese students to attend US universities. Trump and China’s Xi Jinping must still officially sign off.
Regrets? Elon Musk has a few. In a surprisingly relatable...
Regrets? Elon Musk has a few. In a surprisingly relatable move from the world’s richest person, Elon Musk tweeted at 3am yesterday, “I regret some of my posts about” President Trump, saying “they went too far.” In case you spent last week on a darkness retreat: Musk and the president had a public falling out on social media, with Musk accusing Trump of being connected to Jeffrey Epstein and calling for his impeachment, and Trump suggesting the US yank government contracts from Musk’s companies. Less relatably, the Wall Street Journal reports that Musk’s remorse came after a phone call from Vice President Vance and White House Chief of Staff Susie Wiles urging him to stand down. He also reportedly spoke to the president before posting. But like all of us after a breakup, Musk is also throwing himself into work: He announced Tuesday that Tesla will debut its self-driving car service in Austin as soon as June 22.
Protests over federal immigration enforcement raids are spreading to other US cities after President Trump sent the National Guard and Marines to quash protests in Los Angeles, with activists across the country planning more demonstrations for this weekend. Ahead of protests in San Antonio, Texas Gov. Greg Abbott said he would deploy National Guard troops.
Robert F. Kennedy Jr. appointed eight new members to a panel that advises the government on vaccines after firing the entire 17-member group.
A federal judge ruled that the Trump administration cannot continue to detain former Columbia University student and protest leader Mahmoud Khalil, but gave the government until Friday to appeal his decision.
Google offered buyouts to US employees in its Search and other divisions as it looks to cut costs.
Harvey Weinstein was convicted on one count of engaging in a criminal sexual act but acquitted on a second count following a retrial of the disgraced movie mogul in New York.
Brian Wilson, the co-founder of the Beach Boys, whose music is synonymous with California in the 1960s, died at age 82.
Oil prices jumps 4% to 2-month high as tensions rise in Middle East
(Reuters) - Oil prices rose more than 4% on Wednesday,...
(Reuters) - Oil prices rose more than 4% on Wednesday, to their highest in more than two months, after sources said the U.S. was preparing to evacuate its Iraqi embassy due to heightened security concerns in the Middle East.
Brent crude futures settled $2.90, or 4.34%, higher to $69.77 a barrel.U.S. West Texas Intermediate crude gained $3.17, or 4.88%, to $68.15. Both Brent and WTI reached their highest since early April.
Surprised traders bought crude futures on reports that the U.S. was preparing to evacuate its embassy in Iraq, OPEC's No. 2 crude producer after Saudi Arabia. A U.S. official said military dependents could also leave Bahrain. "The market wasn't expecting this big geopolitical risk," said Phil Flynn, analyst at Price Futures Group.
Earlier, Iran's Minister of Defense Aziz Nasirzadeh Tehran will strike U.S. bases in the region if nuclear talks fail and conflict arises with Washington.
Trump said he was less confident that Iran would agree to stop uranium enrichment in a nuclear deal with Washington, according to an interview released on Wednesday. Ongoing tension with Iran means its oil supplies are likely to remain curtailed by sanctions.
Supplies will still increase, as OPEC+ plans to boost oil production by 411,000 barrels per day in July as it looks to unwind production cuts for a fourth straight month.
"Greater oil demand within OPEC+ economies – most notably Saudi Arabia – could offset additional supply from the group over the coming months and support oil prices," said Capital Economics' analyst Hamad Hussain in a note.
News of a trade deal between the U.S. and China, which could boost energy demand in the world's two biggest economies, also kept prices elevated.
