USA benchmark crude West Texas Intermediate (WTI) was trading at $46.69 a barrel Thursday at 11:56 a.m. EDT.
USA crude futures fell sharply on Friday erasing massive gains from earlier in the week, even as oil rig totals nationwide extended a streak of minor declines.
Brent crude oil futures fell 0.67 dollar or 1.35 percent to close at USD 49.08 a barrel at NYMEX. The gap between supply and demand will continue to put pressure on the crude oil prices.
SINGAPORE – Oil prices rose by about 1% on Monday as USA drilling slowed and analysts estimated that $1.5-trillion worth of planned U.S. production investment was uneconomical at prices of $50 a barrel or lower.
“$1.5-trillion of uncommitted spend on new conventional projects and North American unconventional oil is uneconomic at $50 a barrel”, Woodmac added.
THE headline figure on Goldman Sachs’ prediction of where oil prices are headed is certainly eye-catching. The Chinese slowdown has weakened demand as well.
Crude oil exports could also result in more oil being transported across the United States via rail and pipeline, which could increase the chance of derailments and serious accidents across the country or spills that can harm public health and the environment. In July, Oman’s oil production averaged a record 1mn bpd.
The lower CPI could lead to the Federal Reserve deciding to not raise interest rates this month.
The overall production from Opec for next year is expected to be about 30 million bpd, about one million more than this year. The EIA has confirmed that USA oil production is declining, already down 500,000 barrels per day since peaking earlier this spring at 9.6 million barrels per day.
Money managers’ net-long position in WTI rose by 14,821 contracts to 147,678 futures and options in the week ended September 15, leaving them the most bullish in two months, according to data from the U.S. Commodity Futures Trading Commission. While a notable part of their profits is driven by the capacity discipline followed by these airlines, a significant portion of this is attributable to the depressed crude oil prices. In neighboring Iran, the Islamic Republic is preparing for economic sanctions to be lifted as part of a deal with world powers in exchange for limiting its nuclear program.
US output could sink by 400,000 barrels a day next year after a prolonged period of low prices forced producers to idle more than half the rigs seeking oil, the worldwide Energy Agency said in a monthly report. We are concerned that repealing the 40-year-old statutory prohibition on exporting USA crude oil could harm consumers, businesses and our national security.