Oil-directed drilling rigs in the Permian Basin continue to rise and are at 485 for the week ending August 24th. This figure is 29 percent higher than a year ago.
The growth of crude production in the Permian Basin has been very impressive over the past year. Estimated output in September 2018 is expected to be 3.421 million barrels per day (mmbd), an increase of 850,000 b/d, or 33 percent, year-over-year. Continue reading "Permian Takeaway Capacity: From Constrained To Over-Supply by 2020"
WTI Crude oil prices staged a 23% rally from June 21st through September 25th. The rally appeared to be running out-of-steam as OPEC’s market monitoring committee met September 22nd and made no recommendation about continuing the production limits beyond March next year.
But on Monday, the 25th, there was a surprise announcement by the president of Turkey that he would block the Kurds’ crude oil exports through the pipeline that is on Turkish soil if Kurdistan becomes an independent state. The vote was imminent.
Crude prices rose 3% to the highest rate since May, blowing through technical resistance levels. No doubt there were stops at those levels that were hit, triggering more buying. In the CFTC Commitment of Traders report for the week of September 26th, most of the buying was indeed short-covering by specs and hedgers. A minority of the buying was new long speculative positions. Continue reading "Does The Oil Rally Have Legs To Go Higher?"
OPEC President, H.E. Dr. Mohammed Bin Saleh Al-Sada, Qatar's Minister of Energy and Industry, issued a press release August 8th announcing that an informal meeting of OPEC member countries would take place on the sidelines of the 15th International Energy Forum in Algeria from 26 to 28 September 2016. There was an initial price rise, but that faded on Tuesday and Wednesday. Continue reading "OPEC Oil Export Revenues Lowest Since 2003"
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