The energy sector is off to a lower start, pressured by weakness in the major averages. U.S. stock futures are trading down as the markets expect the Federal Reserve to maintain its aggressive monetary policy stance at tomorrow’s policy meeting.
WTI and Brent crude oil futures are now down in early morning trading as investors remain on alert ahead of the Federal Reserve policy meeting tomorrow where it is expected the Fed will raise interest rates by 75 basis points. Markets around the world remain concerned on the possibility of a global economic slowdown as central banks across the world hike interest rates in order to tame inflation. This morning, Sweden's central bank hiked its benchmark rate by a greater than expected full percentage point and warned of more to come. Rate hikes are expected from the Bank of England and the Swiss Central Bank which will hold their policy meetings on Thursday. Tighter monetary policies have also lent support to the U.S. Dollar which is holding up near a 20-year high. Additionally, the DOE said it would sell up to 10M barrels from the SPR for delivery in November, which extends the plan's original aim to sell 180M barrels by the end of October.
Private oil operators left with little room to grow
Small private oil producers, the main drivers of shale growth in the past two years, will likely be forced...
Small private oil producers, the main drivers of shale growth in the past two years, will likely be forced to scale back activity as they run out of prime drilling locations, warned analysts and executives. Energy analytics firm Enverus estimates that most small drillers only have about six years' worth of economical drilling locations left in their acreage portfolio, and signs of a pullback are already starting to show.
US Energy Development Corp. has spent $60 million recently to acquire three separate asset packages in...
US Energy Development Corp. has spent $60 million recently to acquire three separate asset packages in the Permian Basin's Delaware portion. The deals involve working with other operators on 17 new wells, which are expected to generate roughly $100 million worth of production after they enter service by the end of the year.
US natural gas production growth is struggling to keep up with surging foreign and domestic demand, putting...
US natural gas production growth is struggling to keep up with surging foreign and domestic demand, putting further pressure on already strained gas inventories and making them vulnerable to weather shocks, writes analyst John Kemp. Energy Information Administration data show working gas inventories in underground storage stood at 2,771 billion cubic feet on Sept. 9, the second-lowest seasonal level since 2010, as US gas-fired electricity generation and liquefied natural gas exports set records, Kemp writes.
Oil will average $100 a barrel next year as demand rebounds in China and falling Russian output...
Oil will average $100 a barrel next year as demand rebounds in China and falling Russian output keeps supplies tight. That's according to Bank of America analysts, who wrote Monday that global markets will remain strained heading into next year thanks to a variety of factors. Get the full details here.
