US oil producers are clearly not responding to crude oil market prices, and this is at least suggested by the latest data from drilling rigs.
According to a document from Baker Hughes Co. on Friday, the number of various oil drilling platforms deployed in the United States has decreased by two each week to 443. It breaks a series of six consecutive weekly profits.
One factor may actually be anomalous, but it is not very effective in alleviating concerns about household supply. Oil core storage tanks in Cushing, Oklahoma could also decline to a very low level in weeks, but West Texas Intermediate crude oil increased in weeks, re-notching $85 per barrel for the first time in seven years.
New York forward contracts rose 1.3% to a 7-12 month high after falling 1.2% at the beginning of Wednesday.
Domestic crude oil inventories fell by 431,000 barrels over the weekend, according to a document from the Energy Information Agency.
The American Petroleum Institute, which was industry-funded on Tuesday, reported a weekly profit of 3.29 million barrels.
“This is just a sign of a financial recovery that holds the key nature of oil-related products and their position in this recovery,” said Tortoise’s portfolio supervisor, an organization that manages about $8 billion.”
One Rob Thummel says, With assets related to energy, “Honestly, concerns about destruction are more or less obvious.”
Oil is back when the energy crisis caused by the lack of coal and grass fuel coincides with the recovery of the economy recovering from the pandemic. Wall Street has been steadily raising oil cost estimates in recent weeks.
BNP Paribas has become a modern financial institution doing this, raising its forecast from $ 8 a barrel to $ 80.50.
US documents also confirm that strong pulling inventories of distillates and refined products require growth, despite better rates for customers. Since November 2019, gasoline inventories have decreased by 5.37 million barrels.
Gasoline demand has been the highest since 2007 in the last 12 months, measured over an average of four weeks.
After a run where Brent quickly crossed the magical $80 for barrel mark for the first time in three years, a strong recovery took a breather after a phenomenal increase in crude inventories.
The American Petroleum Institute (API) said Tuesday that crude oil inventories had increased by 4,127m barrels in the week leading up to Sept 24, compared to analysts’ consensus on a shortage of 2.33 million barrels.
The API said it had raised 6.1 million barrels of oil inventories last week, well above expectations of a 2.4 million barrel withdrawal.
It is worth noting that despite the accumulation of modern miracles, US oil supplies have fallen by about 73 million barrels so far in the last 12 months, well below pre-pandemic levels.
According to the Energy Information Administration (EIA) fashion records, crude oil inventories in the United States are actually 8% below the usual 5-12 months, 12 months to 414 million barrels during this period.
Standard Chartered commodity charts show that the outlook for surrogate crude oil rates is bleak, claiming that the $ 80 / barrel essentials problem isn’t as great these days as it was a few months ago.
According to Stanchart’s strategist, Brent’s distribution considered returning soon from the trading technology handbook.
The market gained a lot of support for the rest of the week, then above the 2021 average, and doubled its internal days (consecutive days of highs and lows) before rising as well.
The distribution also took into account better trends in the broader and more dangerous asset markets, especially reflecting the 10-year Treasury market.
The rise continued along the oil price curve, with similar values reversing the current weakness. Five years ago, Brent for transportation reached 2.61 USD / bbl p / p and closed a surplus of 59.66 / bbl on September 27 in three months.
Oil costs have risen, Brent has pushed more than $ 80 / barrel to a fairly strong tech factor, and this time the favourable trend in debt has circulated to $ 80 / barrel compared to the momentum that stopped in early July.
Twelve weeks after the upward pressure failed, costs fell to $ 13 / barrel and then rose again to $ 16 / barrel to $ 80 / barrel.
However, Stanchart said he is sceptical that the $ 80 / barrel case has been stronger recently than in early July.
In fact, analysts say the market was out of balance in the interim period. Market expectations for a strong international equity appeal in July were no longer met, August and September appeared to be in modest international surpluses, and international claims were flat in light of June.
A surprising change in market sentiment over oil foundations seems to be the market’s sensitivity to the shift of electricity from the global gasoline market, especially to the colder winters of the Northern Hemisphere.
Despite the combination of weather forecasts, Stanchart says the cold market needs to exaggerate prices and increase fat by changing gasoline. In general, large-scale climate risks seem to be incorporated into today’s costs.
“There are structural problems with the lack of investment in traditional fossil fuels,” Phil Flynn of Price Futures said in a statement Tuesday morning.
“The long-term decline in oil and gasoline is a false assumption, and there will be far greater demand than many people thought a year ago.”
U.S. oil production has declined by more than 1 million barrels/day in the last two weeks, while crude oil production has increased to 10.6 million barrels/day in the week leading up to September 17, among Mexican Gulf oil producers. More than 84% finally returned online after Hurricane Aida landed. Late August.
According to a major Baker-Hughes study, the number of US oil drills increased from 10 w / w to a 171 month high of 421 in the week leading up to September 24. This is the most significant double-digit growth since April 2017. Four of Louisiana’s 17 facilities, which were inactive during Hurricane Aida, regained power (three abroad and one on land), leaving nine idle outfits.
In areas unaffected by Aida, the biggest w / w benefit was the growth of four Oklahoma farmers, with state oil drilling at 38. Within the Permian basins of western Texas and New Mexico, the number of rigs in the Delaware Basin has increased by two, the number of gardens in the Midland basin has decreased to one, and various Permian tastes remain unchanged in 21 costumes.
Also Read: Technology Depleted With Post-Market Wrap Revenue
