US drillers cut oil and gas rigs for second week in a row
U.S. energy firms reduced the number of operating oil and natural gas...
U.S. energy firms reduced the number of operating oil and natural gas rigs for the second consecutive week, marking the first time this has happened since late June, according to Baker Hughes' report on Friday. The total rig count fell by one to 585 in the week ending August 23, which is 47 rigs, or 7%, lower than the same time last year.
Oil rigs remained unchanged at 483, while gas rigs decreased by one to 97. The overall rig count dropped by about 20% in 2023 after rising by 33% in 2022 and 67% in 2021, driven by declining oil and gas prices, rising labor and equipment costs due to inflation, and a focus on debt reduction and shareholder returns over production increases.
U.S. oil futures have risen by about 5% so far in 2024, following an 11% drop in 2023. This increase in oil prices is expected to boost U.S. crude output from a record 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.7 million bpd in 2025, according to the U.S. Energy Information Administration (EIA). On the gas side, reduced drilling activities earlier in the year, due to low prices, are expected to cause U.S. gas output to decline to 103.3 billion cubic feet per day (bcfd) in 2024, down from a record high of 103.8 bcfd in 2023, according to the EIA.
CNBC: U.S. crude oil rises above $74 per barrel but posts weekly loss on slowing China demand
U.S. crude oil futures rose more than 2% on Friday as the Federal...
U.S. crude oil futures rose more than 2% on Friday as the Federal Reserve indicated interest rate cuts are coming, but prices fell for the week as slowing demand in China weighs on the market.
Fed Chairman Jerome Powell said the “time has come for policy to adjust” as inflation has declined significantly. Lower interest rates typically stimulate economic growth, which boosts oil demand.
However, oil prices are still down for the week, with the U.S. benchmark falling 2.4% and global benchmark Brent edging lower by 0.83%.
Here are Friday’s closing energy prices:
West Texas Intermediate October contract: $74.83 per barrel, up $1.82, or 2.49%. Year to date, U.S. crude oil has gained 4.4%.
Brent October contract: $79.02 per barrel, up $1.80, or 2.33%. Year to date, the global benchmark is ahead 2.6%.
RBOB Gasoline September contract: $2.28 per gallon, up 4 cents, or 1.81%. Year to date, gasoline is up 8.6%.
Natural Gas September contract: $2.02 per thousand cubic feet, down more than 2 cents, or 1.27%. Year to date, gas is down 19.5%.
Traders have largely ignored volatile geopolitical tensions in the Middle East and adopted an increasingly bearish sentiment as oil demand slows in China due to electric vehicle sales and a softening economy.
Dow closes sharply higher as U.S. stocks book back-to-back weekly gains
The U.S. stock market finished sharply higher Friday,...
The U.S. stock market finished sharply higher Friday, as investors appeared encouraged by Federal Reserve Chair Jerome Powell’s Jackson Hole speech signaling the Fed was on the path toward cutting interest rates.
The Dow Jones Industrial Average climbed 462.30 points, or 1.1%, to close at 41,175.08.
The S&P 500 rose 63.97 points, or 1.1%, to finish at 5,634.61.
The Nasdaq Composite gained 258.44 points, or 1.5%, to end at 17,877.79.
According to Dow Jones Market Data, the Dow ended just 0.1% below its record closing high on July 17, while the S&P 500 finished 0.6% below its all-time closing high on July 16.
For the week, the Dow advanced 1.3% while the S&P 500 and technology-heavy Nasdaq each increased 1.4%, according to Dow Jones Market Data. All three major U.S. stock indexes booked back-to-back weekly gains.
Small oil firms feel the pinch of industry consolidation
In the heart of West Texas, small oil businesses like Benro Pump and...
In the heart of West Texas, small oil businesses like Benro Pump and Supply battle to stay relevant as industry consolidation and technological advancements push them to the margins. Thomas Jacob of Rystad Energy notes that mergers create big companies that often favor equally large vendors, leaving smaller firms struggling to compete on price and scale.
Midwest gasoline prices spike on refinery disruptions
US Midwest gasoline prices hovered above the national average over the...
US Midwest gasoline prices hovered above the national average over the past three weeks as a series of refinery outages in Chicago and Ohio reduced refinery utilization and drained regional inventories, the Energy Information Administration reports. Regional capacity utilization has recovered to 97% since Aug. 16 after dropping to 86% in the previous two weeks.
