U.S. energy firms this week added oil and natural gas rigs for the third time in four weeks, energy services firm Baker Hughes said in its closely followed report on Friday.
An environmental group on Thursday sued the U.S. government over its approach to examining the harm caused by ageing offshore oil and gas infrastructure, citing the risks delayed decommissioning poses to people and the environment.
All eyes are fixed on US inflation data as crude oil prices have maintained their hot streak and are set to end this week with a third weekly gain. Surging geopolitical tensions around Israel and Lebanon have overshadowed slackening economic data from the US in May, with every single day this week posting a day-on-day increase and Brent set to finish the week at $87 per barrel.
Traders’ pessimism in the global oil market began to increase after OPEC reiterated it might consider rolling back production cuts in 2024.
Rystad Energy recently predicted that global oil supply growth will be virtually non-existent this year because of the OPEC+ cuts without mentioning spare capacity.
Crude prices have recovered in recent days, but the supply side looks bearish due to OPEC+’s spare capacity and rising production from the US, Guyana, and Brazil.
Surging U.S. crude exports, particularly WTI Midland, have dominated global markets, with record export volumes and a significant portion being sent to Europe.
The addition of WTI Midland has provided benefits for U.S. producers by allowing forward sales and reducing pricing risk.
According to data from ship tracker Kpler, WTI Midland exports hit a record at 2.94 million bpd in December.
US crude oil inventories for the week ended May 24, excluding the Strategic Petroleum Reserve, decreased by 4.2 million bbl from the previous week, according to data from the US EIA
With Africa one of the last frontiers for upstream development, the OPEC+ alliance is courting emerging oil producers on the continent, such as Namibia, Ghana and Senegal, for potential membership.
Repsol has secured a licence from the US Treasury Department to continue and expand its oil and gas operations in Venezuela, Reuters reported, citing sources.
Oil prices fell in early Asian trade on Tuesday, with investors anticipating higher-for-longer U.S. inflation and interest rates will depress consumer and industrial demand.
Foreign oil companies in Venezuela are concerned they won’t get licenses from the US in time to allow them to operate after May 31.