Yet despite this uncertainty, shale production continues to grow, albeit more slowly and modestly than during the peak boom years. According to one of them, Saxo Bank's commodity chief Ole Hansen, the addition of WTI to the Brent crude basket will not have much of an impact on prices. Some industry observers have pointed to uncertainty about the production growth prospects of the shale patch, which currently provides most of U.S. oil production," according to Aaron Brady, a VP of energy oil market services at S&P Global, who spoke to the Houston Chronicle. crude exports originate from Texas ports, and most of the crude shipped out originates from the Permian basin, which has been the growth engine for U.S. That's because "The vast majority of U.S. Permian oil production will be particularly relevant when WTI is added to the Brent crude basket. fundamentals such as Strategic Petroleum Reserve releases and Permian production," Rebecca Babin, senior energy trader at IBC Private Wealth US, told Reuters. "Bottom line for Brent is that it will be much more influenced by U.S. political, economic, and industry developments would come to have a much bigger effect on Brent crude prices than before. It will come to dominate it, and this means that U.S. According to some analysts, WTI will not just become another member of the Brent crude basket. Related: Large Crude Inventory Draw Jolts Oil Prices "WTI Midland is the best candidate for this because it already has a fairly similar refining slate to most of the North Sea grades," S&P Global's director for crude and fuel oil markets told Reuters. This has pulled down crude oil prices-or, at a minimum, capped gains.At the same time, the amount of WTI crude that is arriving in Europe daily has increased massively, hitting 1.25 million bpd last month, making it a perfect candidate for the international benchmark basket, according to S&P Global, which is making the addition. While China’s oil demand has indeed been on the rise, manufacturing activity in the world’s top oil importer has been lackluster compared to projections. lawmakers are on track to come up with a deal on the debt ceiling that would allow it to keep paying its bills.Ĭhina’s oil demand has been somewhat of a disappointment compared to bullish manufacturing outlooks that have failed to materialize in full. Another significant force is the signs that U.S. crude oil inventories, and Russia’s mysterious crude oil production levels. Forces at play in the oil markets this week are the ever-present China demand outlook, OPEC+’s upcoming meeting, the Fed’s future interest rate plans, rising U.S. This week has been a rollercoaster for crude oil prices, first sent spiraling downward at the beginning of the week before reclaiming much of the lost ground toward the end. While it hasn’t erased all of the week’s losses, it has recouped more than half. The Brent crude oil benchmark had risen $2.58 (3.55%) per barrel to $75.18. WTI was sent back up above the $70 threshold to $70.96-a $2.87 (+4.22%) rise on the day. Crude oil prices turned around on Thursday, erasing most of the week’s earlier losses despite the latest EIA report that indicated crude oil inventories rose more than expected.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |