Posted on Oct 17, 2016
Oil prices firm, rise in U.S. drilling weighs
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Oil prices reversed losses on Monday on expectations of an OPEC intervention next month to curb production, but a rising rig count in the United States capped gains.
International benchmark Brent crude oil futures LCOc1 rose 23 cents to $52.18 per barrel at 1151 GMT (0751 EDT), after falling to as low as $51.56 a barrel earlier.
U.S. West Texas Intermediate (WTI) crude oil futures were trading at $50.46 per barrel, up 11 cents from their last settlement, after hitting a session low of $49.94 a barrel.
Analysts said that the market is fundamentally supported by expectations that members of the Organization of the Petroleum Exporting Countries (OPEC) would take action to support prices at their meeting in Vienna on November 30.
"It's very hard for the Brent crude price to sell below the $50 a barrel mark ahead of the November 30 meeting," said Bjarne Schieldrop, chief commodities analyst at SEB.
He said that OPEC kingpin Saudi Arabia sent a very clear statement about working to curb production and support higher prices, but added that an oversupplied physical crude market was capping further gains in prices.
"Record supply from OPEC year-to-date, weaker global GDP estimates, and still elevated inventories cause us to lower and flatten our oil price outlook," Bernstein Energy said in a note.
OPEC pumped a record 33.6 million barrels of crude oil per day in September, with some members signaling they plan further increases. PRODN-TOTAL.
Nigeria expects its crude output to rise 22 percent to 2.2 million bpd by the end of December, oil minister Emmanuel Ibe Kachikwu said. And Libya's output has been steadily rising, hitting 551,000 bpd last week.
Traders said that WTI was under pressure from a report on Friday by oil services provider Baker Hughes showed U.S. drillers added four rigs in the week to Oct. 14. It was the 16th week in a row that oil drillers had gone without making cuts, indicating more production to come. [RIG/U]
International benchmark Brent crude oil futures LCOc1 rose 23 cents to $52.18 per barrel at 1151 GMT (0751 EDT), after falling to as low as $51.56 a barrel earlier.
U.S. West Texas Intermediate (WTI) crude oil futures were trading at $50.46 per barrel, up 11 cents from their last settlement, after hitting a session low of $49.94 a barrel.
Analysts said that the market is fundamentally supported by expectations that members of the Organization of the Petroleum Exporting Countries (OPEC) would take action to support prices at their meeting in Vienna on November 30.
"It's very hard for the Brent crude price to sell below the $50 a barrel mark ahead of the November 30 meeting," said Bjarne Schieldrop, chief commodities analyst at SEB.
He said that OPEC kingpin Saudi Arabia sent a very clear statement about working to curb production and support higher prices, but added that an oversupplied physical crude market was capping further gains in prices.
"Record supply from OPEC year-to-date, weaker global GDP estimates, and still elevated inventories cause us to lower and flatten our oil price outlook," Bernstein Energy said in a note.
OPEC pumped a record 33.6 million barrels of crude oil per day in September, with some members signaling they plan further increases. PRODN-TOTAL.
Nigeria expects its crude output to rise 22 percent to 2.2 million bpd by the end of December, oil minister Emmanuel Ibe Kachikwu said. And Libya's output has been steadily rising, hitting 551,000 bpd last week.
Traders said that WTI was under pressure from a report on Friday by oil services provider Baker Hughes showed U.S. drillers added four rigs in the week to Oct. 14. It was the 16th week in a row that oil drillers had gone without making cuts, indicating more production to come. [RIG/U]
Oil prices firm, rise in U.S. drilling weighs
Posted from reuters.com
Oil
Saudi Arabia
United States
Oil and Energy
Posted 8 y ago
Responses: 4
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It is a constant cycle here is Texas we need oil to come up to around $70 to justify drilling
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My son sells oil field pipe. Things have been dead for a long time, then Thursday he sold a million dollars of pipe, and Friday he sold a half million dollars. I don't know if the slow times are picking up. I hope they are. He almost lost his house. This will look good on his bonus check.
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SGT (Join to see)
LT Charles Baird - What happened to all those land owners that became millionaires over night? I understand. All Midland and Odessa care about is Friday night football. How do the people living there pay all that money? I heard it was a rat hole town, but I didn't know it's this bad. It seems like the Attorney General of Texas would get involved with the price gouging law. Sorry you and your wife are having to go through that.
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LT Charles Baird
SGT (Join to see) There are quite a few people who made the money still here as can be seen by the houses they live in - quite a few have also moved to cities like Houston as most major oil companies have their headquarters there. Most of the people in the area have lived here for most of their lives or are 2nd, 3rd, and 4th generation here and either have their homes from prior to the boom when it was cheaper here or still live at home with their parents. I have met quite a few 30 & 40 year olds that still live with their parents and combine all of their money to make it. Those of us that are transplants because of work; we are just screwed and need to do the best we can.
I was travelling back from Virginia the other day and a gentleman on the plan was talking how 6 months ago he moved here from San Francisco because of his job with Chevron; and his home here cost more than his home in San Francisco.
Friday night football is still big here in the area; I guess that is the only other thing they have besides oil; because there is nothing else here.
If you live here long enough you can tell the people from Midland and the people from Odessa; the people who were born and raised in Midland have an attitude of entitlement and their crap does not stink; while the people of Odessa are more down to earth and friendly.
Price gouging is a way of life around here. This is one place where "Southern Hospitality" does not exist - my wife is a southern girl and she will even tell you that.
I was travelling back from Virginia the other day and a gentleman on the plan was talking how 6 months ago he moved here from San Francisco because of his job with Chevron; and his home here cost more than his home in San Francisco.
Friday night football is still big here in the area; I guess that is the only other thing they have besides oil; because there is nothing else here.
If you live here long enough you can tell the people from Midland and the people from Odessa; the people who were born and raised in Midland have an attitude of entitlement and their crap does not stink; while the people of Odessa are more down to earth and friendly.
Price gouging is a way of life around here. This is one place where "Southern Hospitality" does not exist - my wife is a southern girl and she will even tell you that.
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SGT (Join to see)
LT Charles Baird - Damn,I bet y'all can't wait to get out of there. I've always heard Midland, Odessa, and that area are just a very hot spot in the road. I think Midlands also famous for the little girl being rescued from falling in a mine shaft and was stuck in there for several days.
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LT Charles Baird
SGT (Join to see) Never heard of the little girl; but George Bush's childhood home is here. One good thing I can say about the area - according to some young kids I am in college with; if you are a graduate from the local high school; you can to Midland college and get your associates degree for free. One kid I was in class with is getting his pre-engineering degree so he can transfer to Lubbock and go to Texas Tech; which is the only college in the state that will accept ALL of Midlands credits outside of University of Texas Permian Basin from what I am told.
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Thanks for letting us know that there was a rising oil rig count in the United States SPC Britanny *Winnie* Balthaser. I am glad that U.S. drillers added four rigs in the week to Oct. 14 which was the "16th week in a row that oil drillers had gone without making cuts, indicating more production to come."
I hope that in the next couple of years we will increase domestic refining capability.
I hope that in the next couple of years we will increase domestic refining capability.
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