A two-year rally in US oil and gas stocks is coming to a halt as falling crude prices and fears of a slowdown in the world’s biggest economy threaten producers’ ability to maintain bumper shareholder payouts.
The G7-led price cap on Russian oil exports has forced the Kremlin to raise the tax burden on producers, dealing a fresh blow to an energy sector already struggling with western sanctions, according to officials from the western coalition.
In 2022, almost 7.8 million barrels of crude oil daily were produced from so-called tight oil resources. The other name for these is unconventional resources. Yet a third and a lot more popular name is shale.
The total number of total active drilling rigs in the United States fell by 7 this week, according to new data from Baker Hughes published Friday, after rising by 2 last week.
Greek shipping tycoons and their tanker companies are moving large volumes of Russian oil and are making a lot of money off these trades, which are mostly shunned by other Western ship owners after the West moved to sanction Russia’s crude.
Earlier this year, Russia said it would reduce its oil production rate by half a million barrels daily in response to Western sanctions and as part of OPEC+ efforts to prop up international oil prices.
After a very fruitful period that saw the energy sector emerge as the best performer in 2022, the oil price rally has ground to a halt and fully reversed course as oil and prices tumbled to multi-year lows. Energy prices have slid again after the Fed hiked interest rates on Wednesday to the highest level in 16 years as it attempts to combat inflation. The price action has come as a surprise considering that U.S. inventories have been steadily falling for weeks.
While a rebound in oil prices on Friday morning may have stopped this from being one of the worst weeks for oil in recent memory, oil markets are struggling to shake the economic gloom and doom that is driving bearish sentiment.
Crude oil prices are set to extend their losing streak to three weeks as recession fears and anxiety about the U.S. banking system prevail over any supply concerns.
The National Petroleum Authority (NPA) has initiated moves to promote fuel trade and investment between Ghana and Mali.