AuthorTopic: Oil Price Crash: Who Cooda Node?  (Read 132493 times)

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🤡 Trump’s Dangerous Oil Price Game
« Reply #825 on: May 07, 2019, 12:50:09 AM »
Now you know the reason the Kochs will put the Thumbscrews to Trumpovetsky.

RE

https://oilprice.com/Geopolitics/Middle-East/Trumps-Dangerous-Oil-Price-Game.html

Trump’s Dangerous Oil Price Game
By Nick Cunningham - May 06, 2019, 6:00 PM CDT


Trump’s trade war may have depressed oil prices at the start of the week, but the U.S.’ decision to send warships to the Middle East is an ominous sign of a potential escalation in conflict with Iran. The oil market seesawed on Monday as traders tried to balance these two sources of instability.

U.S. national security adviser John Bolton said that the U.S. was sending a carrier strike group and a bomber task force to the Middle East to send a message to Iran that any attack on U.S. interests would be met with “unrelenting force.” Bolton has always had a particularly hawkish stance on Iran, and reportedly rattled the national security establishment months ago when he requested that they draw up plans for a military strike.

The U.S. decision to send warships to the Middle East needs to be viewed in that context. Bolton, perhaps frustrated by his struggling regime change campaign in Venezuela, has turned his sights back to Iran, a perennial obsession of his.

The move comes only a week after the expiration of waivers on sanctions, and the U.S. is aiming to cut Iranian oil exports to zero. Trump is also looking at other non-oil sanctions as a way to squeeze Iran.

The surge in oil prices so far this year has been a supply-driven phenomenon, with OPEC+ taking 2.2 million barrels per day (mb/d) offline, a figure that includes the involuntary outages in Iran and Venezuela, according to Bank of America Merrill Lynch. “Iran's crude exports fell from a high of nearly 2.5mn b/d to a low of around 600k b/d in December before rebounding this year,” the investment bank wrote in a May 3 note. “As sanctions waivers expire in May, we anticipate further pressure on Iran's exports and anticipate volumes will fall below 500k b/d in 2H19 and could even reach zero depending on how wary buyers are of sanctions.”

Overall global supply outages are now at a multi-decade high of 4 mb/d, the bank said. Historically, every 1 mb/d swing in supply balances equates to a roughly $17-per-barrel move in oil prices, the investment bank said. 

However, while spot and short-term futures prices have climbed significantly this year, longer-dated futures have only moved up modestly. As Bank of America notes, spot prices are up $20 per barrel from December, but three-year futures prices are up only $6. That makes it harder for U.S. shale drillers to hedge future output, which makes it trickier to grow production. In other words, the shale response could be more modest than most people think, at least until the back end of the futures curve rises further.

It also means that OPEC+ has been dealt a “very good hand,” as Bank of America puts it. There is less of a fear that restraining output will stimulate a massive shale response, at least much larger from today’s already record high levels. Moreover, because Saudi Arabia needs higher oil prices to balance its books – Bank of America puts its fiscal breakeven price at about $93 per barrel this year – Riyadh will move slowly in bringing output back online. Bank of America puts the Brent floor price at about $70 per barrel.
Related: China Set To Defy U.S. Sanctions On Iran

The U.S. obsession with Iran puts further upward pressure on crude, and the moving of warships closer to Iran is worrying. The trick, from the Trump administration’s perspective, is how to escalate conflict with Iran (and Venezuela, for that matter) without sending oil prices soaring. High prices are a domestic political threat.

Judging by the reaction of the oil markets on Monday – slightly down during midday trading, but up later in the afternoon – Trump may have found the solution to this predicament. He ramped up the trade war with China at the same time that his administration escalated conflict with Iran. Normally, fears of conflict in the Middle East would drive up prices. But those concerns were clearly offset by the perceived pitfalls to the global economy from Trump’s trade war. So, it seems, Trump can have his Iran conflict and keep oil prices in check at the same time. It may only cost us global economic stability.

By Nick Cunningham of Oilprice.com
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🤡 Iranian Oil Pipeline Explodes
« Reply #826 on: May 08, 2019, 12:11:45 AM »
Sabotage, IMHO.  Should help prop up the prices.  They're taking a beating with Trumpovetsky's latest Trade War.

RE

https://oilprice.com/Latest-Energy-News/World-News/Iranian-Oil-Pipeline-Explodes.html

Iranian Oil Pipeline Explodes
By Irina Slav - May 07, 2019, 9:30 AM CDT


An oil pipeline in the Iranian province of Khuzestan, exploded yesterday, TankerTrackers.com reported citing Iran’s state news agency IRNA and disclosing satellite images of the blast. According to the governor of the province, there were no casualties, IRNA reported. Still, a nearby village has been evacuated.

Later reports from the Associated Press said the fire had also affected a gas pipeline, with five people injured.

The cause of the blast was accidental, according to media reports. The 42-inch pipeline was being repaired and what caused the fire was a bulldozer crashing into the pipeline and an oil spill that caught fire. The valves to linked oil and gas pipelines have been shut off to prevent the fire from spreading, but the oil in the Omidieh pipeline needs to burn in full before repairs can be restarted.

This is the second serious pipeline blast in Khuzestan, Iran’s main oil-producing province, in the last two months. In March, a gas pipeline there exploded, killing four and wounding at least five people. The blast was caused by a gas leakage, according to local government officials. However, a deeper cause of such accidents, some believe, is the combination of inadequate safety measures and aging pipeline infrastructure.

Related: Middle East Oil Giants Are About To Upend Oil Trading

While these factors cause accidental pipeline blasts, sabotage is not unheard of, either, in Khuzestan, which is home to most of Iran’s Arab minority. Separatism is a long-running theme in the area and protests are not infrequent either.

The most recent ones, however, had nothing to do with Arabs versus Persians. They were sparked by massive floods that devastated Khuzestan, with the locals blaming the government for its poor handling of the situation. Some even accused the government of deliberately diverting floodwater away from oil facilities instead of cities. Oil Minister Bijan Zanganeh denied the accusations.

The floods also caused Iran to reduce production at the fields in the affected parts of Khuzestan, although the reduction was not particularly significant, at 20,000 bpd. The floods killed more than 70 people and costs Iran US$2.5 billion in damaged infrastructure, homes, and farmland.

By Irina Slav for Oilprice.com
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🛢️ The Shale Boom Is About To Go Bust
« Reply #827 on: May 10, 2019, 02:33:02 AM »
https://oilprice.com/Energy/Crude-Oil/The-Shale-Boom-Is-About-To-Go-Bust.html

The Shale Boom Is About To Go Bust
By Nick Cunningham - May 09, 2019, 6:00 PM CDT


The shale industry faces an uncertain future as drillers try to outrun the treadmill of precipitous well declines.

For years, companies have deployed an array of drilling techniques to extract more oil and gas out of their wells, steadily intensifying each stage of the operation. Longer laterals, more water, more frac sand, closer spacing of wells – pushing each of these to their limits, for the most part, led to more production. Higher output allowed the industry to outpace the infamous decline rates from shale wells.

In fact, since 2012, average lateral lengths have increased 44 percent to over 7,000 feet and the volume of water used in drilling has surged more than 250 percent, according to a new report for the Post Carbon Institute. Taken together, longer laterals and more prodigious use of water and sand means that a well drilled in 2018 can reach 2.6 times as much reservoir rock as a well drilled in 2012, the report says.

That sounds impressive, but the industry may simply be frontloading production. The suite of drilling techniques “have lowered costs and allowed the resource to be extracted with fewer wells, but have not significantly increased the ultimate recoverable resource,” J. David Hughes, an earth scientist, and author of the Post Carbon report, warned. Technological improvements “don’t change the fundamental characteristics of shale production, they only speed up the boom-to-bust life cycle,” he said.

For a while, there was enough acreage to allow for a blistering growth rate, but the boom days eventually have to come to an end. There are already some signs of strain in the shale patch, where intensification of drilling techniques has begun to see diminishing returns. Putting wells too close together can lead to less reservoir pressure, reducing overall production. The industry is only now reckoning with this so-called “parent-child” well interference problem.

Also, more water and more sand and longer laterals all have their limits. Last year, major shale gas driller EQT drilled a lateral that exceeded 18,000 feet. The company boasted that it would continue to ratchet up the length to as long as 20,000 feet. But EQT quickly found out that it had problems when it exceeded 15,000 feet. “The decision to drill some of the longest horizontal wells ever in shale rocks turned into a costly misstep costing hundreds of millions of dollars,” the Wall Street Journal reported earlier this year.

Ultimately, precipitous decline rates mean that huge volumes of capital are needed just to keep output from declining. In 2018, the industry spent $70 billion on drilling 9,975 wells, according to Hughes, with $54 billion going specifically to oil. “Of the $54 billion spent on tight oil plays in 2018, 70% served to offset field declines and 30% to increase production,” Hughes wrote.

As the shale play matures, the field gets crowded, the sweet spots are all drilled, and some of these operational problems begin to mushroom. “Declining well productivity in some plays, despite application of better technology, are a prelude to what will eventually happen in all plays: production will fall as costs rise,” Hughes said. “Assuming shale production can grow forever based on ever-improving technology is a mistake—geology will ultimately dictate the costs and quantity of resources that can be recovered.”

There are already examples of this scenario unfolding. The Eagle Ford and Bakken, for instance, are both “mature plays,” Hughes argues, in which the best acreage has been picked over. Better technology and an intensification of drilling techniques have arrested decline, and even led to a renewed increase in production. But ultimate recovery won’t be any higher; drilling techniques merely allow “the play to be drained with fewer wells,” Hughes said. And in the case of the Eagle Ford, “there appears to be significant deterioration in longer-term well productivity through overcrowding of wells in sweet spots, resulting in well interference and/or drilling in more marginal areas that are outside of sweet-spots within counties.”

In other words, a more aggressive drilling approach just frontloads production, and leads to exhaustion sooner. “Technology improvements appear to have hit the law of diminishing returns in terms of increasing production—they cannot reverse the realities of over-crowded wells and geology,” Hughes said.

The story is not all that different in the Permian, save for the much higher levels of spending and drilling. Post Carbon estimates that it the Permian requires 2,121 new wells each year just to keep production flat, and in 2018 the industry drilled 4,133 wells, leading to a big jump in output. At such frenzied levels of drilling, the Permian could continue to see production growth in the years ahead, but the steady increase in water and frac sand “have reached their limits.” As a result, “declining well productivity as sweet-spots are exhausted will require higher drilling rates and expenditures in the future to maintain growth and offset field decline,” Hughes warned.

By Nick Cunningham of Oilprice.com
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🛢️ US oil drops 1% as US-China trade tensions increase
« Reply #828 on: May 14, 2019, 03:29:59 AM »
https://www.cnbc.com/2019/05/13/oil-market-us-china-trade-war-global-economy-in-focus.html

US oil drops 1% as US-China trade tensions increase
Published Mon, May 13 2019 5:50 AM EDTUpdated Mon, May 13 2019 2:35 PM EDT
Reuters
   

Oil pumpjacks in the Permian Basin oil field are getting to work as crude oil prices gain.
Spencer Platt | Getty Images

Oil futures fell on Monday with Wall Street, as worries about the Sino-U.S. trade talks spooked investors who had sent oil higher in early trade on concerns that tanker attacks in the Middle East could disrupt supplies.

Brent crude futures were down 42 cents at $70.20 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled down 1%, or 62 cents, at $61.04.

Oil was pressured by a slump in stocks and other risk assets as investors moved into safe havens like Treasury bonds due to the intensifying U.S.-China trade war.

China defied a warning from U.S. President Donald Trump and said it would impose higher tariffs on a range of U.S. goods including frozen vegetables and liquefied natural gas. The move was widely expected after Washington last week raised tariffs on $200 billion in Chinese imports.

Investors fear the trade war between the world’s two largest economies could escalate further and derail the global economy.

Earlier, oil prices had risen more than $1 a barrel after Saudi Arabia said two Saudi oil tankers were among vessels attacked off the coast of the United Arab Emirates. It was unclear how the attacks occurred.

“This attack raises the stakes for oil and will add more volatility,” said Phil Flynn, an analyst at Price Futures Group in Chicago, in a note.

On Sunday, the UAE said four commercial vessels were attacked near Fujairah, one of the world’s largest bunkering hubs. The port lies near the Strait of Hormuz, a vital oil export waterway.

Iran’s foreign ministry described the incidents as “worrisome and dreadful” and called for an investigation.

Saudi Arabia is the largest producer in the Organization of the Petroleum Exporting Countries (OPEC) and the UAE is third.

The U.S. Maritime Administration said in an advisory on Sunday that the incidents off Fujairah, one of seven emirates in the UAE, had not been confirmed and urged caution.

Volumes were strong in early U.S. trading, with more than 710,000 U.S. crude futures contracts changing hands.

Oil prices have risen more than 30 percent this year, supported by supply concerns as the United States imposed sanctions on Iran and Venezuela.

Washington reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and world powers. Iran insists on exporting at least 1.5 million barrels per day (bpd) of oil, triple May’s expected levels under U.S. sanctions, as a condition for staying in an international nuclear deal, sources with knowledge of Iran-EU talks said.
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More graphs at the link.

RE

https://seekingalpha.com/article/4263164-natural-gas-lower-expected-inventory-build-poor-price-performance

Natural Gas: A Lower Than Expected Inventory Build And A Poor Price Performance
May 13, 2019 7:15 AM ET

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About: VelocityShares 3x Long Natural Gas ETN (UGAZ), Includes: BOIL, DGAZ, GAZB, KOLD, UNG, UNL
Andrew Hecht

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Summary

Natural gas recovered.

A bullish inventory report on May 9.

Natural gas sits near the recent high, but it is not running anywhere on the upside.

A quiet time of the year.

Natural gas production and consumption grow - Trade the range.

Looking for more? I update all of my investing ideas and strategies to members of Hecht Commodity Report. Get started today »

The price of natural gas was sitting at just over the $2.60 per MMBtu level on Friday, May 9. Since November, the price of the volatile energy commodity has traded in a range from $2.4390 per MMBtu to a high at $4.929. The high came in mid-November, and the low was at the end of April. The price action in the natural gas futures market reflected seasonal factors over recent months. The price hit a high as the peak season of demand approached during the time of the year when stockpiles of the energy commodity decline. It hit a low as inventories began to climb during the start of the injection season.

The vast majority of the price movement in the natural gas futures market occurred from November through February, and since then the price range has declined. As we head into the late spring and summer months, inventories will build in preparation for the winter of 2019/2020. It is likely that we will not see any dramatic price action ion the natural gas futures market over the coming weeks, and maybe even months. Therefore, trading the range in the natural gas market using the Velocity Shares 3X Long Natural Gas ETN product (UGAZ) and its bearish counterpart (DGAZ) could be the optimal approach to the natural gas market as we move towards the summer season.
Natural gas recovered

After a technical breakdown which turned out to be nothing more than a head fake to stop out those holding long positions and to give shorts a brief moment of hope, the price of natural gas turned higher during the week of April 22.

Source: CQG

As the weekly chart shows, the price of nearby natural gas futures fell to its most recent low at $2.439 per MMBtu in late April. In 2018, the low for the year came in February at $2.53. In 2017, the bottom was at $2.522 in February, and in 2016 natural gas fell to a low at $1.611 in March. The price of the energy commodity had made a series of higher lows for three consecutive years before the price dipped below the $2.50 per MMBtu level during the week of April 15 which scared out longs and emboldened shorts. After the selling ran out of steam, the price began to drift higher. The weekly chart shows that price momentum and relative strength turned higher in oversold territory. Since the price moved back into its trading range, above the prior year’s lows, weekly historical volatility fell to under the 18% level at the end of last week. The total number of open long and short positions had turned slightly higher as the price was dropping but stabilized around the 1.277 million contract level as of the end of last week. Natural gas turned higher, and a bullish inventory report from the Energy Information Administration on Thursday, May 9 caused the price to put in a new high on Friday as it traded to $2.647 per MMBtu. While the price of the June futures traded to their highest level since April 15, it did not run away on the upside.
A bullish inventory report on May 9

I had expected inventories of natural gas to rise by 110 billion cubic feet for the week ending on May 3, but the EIA told us that the stockpile build was only 85 bcf.

Source: EIA

As the chart shows, stocks rose to a total of 1.547 trillion cubic feet as of May 3 which was 9% above last year’s level and 16.4% below the five-year average for this time of the year. The withdrawal season ended in late March and stocks fell to a low at 1.107 tcf, but they have climbed by 440,000 bcf over the past five weeks. Stocks will continue to grow until November, which is six months away, at the current rate we could go into the 2019/2020 season with around 3.7 trillion cubic feet of natural gas in storage. However, that will depend on the rate of production and the temperature over the coming summer months. A warmer than average summer season would increase demand for natural gas which is a primary input in the production of electricity in the United States. For the coming week, I expect that stockpiles will grow by more than on May 3 and the EIA will report a build of around 105 bcf into inventories.
Natural gas sits near the recent high, but it is not running anywhere on the upside

The initial reaction to the 85 bcf inventory build on May 9 was not too exciting. However, the price drifted higher on that day and closed the session near the highs of the day. On Friday, natural gas moved to the side and back above the $2.60 per MMBtu level on the June futures contract.

Source: CQG

As the daily chart illustrates, natural gas futures traded to the highest price since mid-April last Friday and closed the week above the $2.60 level for the third time in May and since April 16. Price momentum and relative strength are trending higher above neutral territory while open interest has been gently rising which is a sign that some longs are coming back to the futures market. I would be shocked to see the price take off on the upside from the current level. It is more likely that we will see natural gas trade in a narrow range between $2.50 and $2.90 over the coming weeks and perhaps through June so long as the weather remains around average temperatures. However, in 2017 the price range from May 1 through June 30 on the nearby futures contract was from $2.855 to $3.431, and in 2018 the price was between $2.695 and $3.053 per MMBtu. While a move towards the $3 level is not out of the question, the odds favor lots of selling above $2.85 per MMBtu in the current environment.
A quiet time of the year

Both the supply and the demand side of the fundamental equation for natural gas have expanded over the past years. Massive reserves sitting in the Marcellus and Utica shale regions of the United States continue to support rising output at the current price level. However, the growing demand for natural gas-powered electricity at the expense of coal in the US means that a hot summer could create more stress on the demand side of the fundamental equation. Meanwhile, the LNG business continues to grow, but the stall in trade negotiations between the US and China could cause demand for the natural gas in liquid form to drop from Asia over the coming weeks and months which would put pressure on the price of the energy commodity. The spring and summer months are typically quiet times in the natural gas futures market. No significant signs are telling us that 2019 will be much different from the past years.
Natural gas production and consumption grow- Trade the range

Perhaps the best illustration of the growth of the supply and demand side of the natural gas market in the US comes from looking at the trend in the open interest in the natural gas futures market.

Source: CQG

While the price of natural gas traded in a wide and wild range of $1.02 to $15.65 per MMBtu since 1990, the path of the total number of open long and short positions has steadily risen over the past three decades. The vast majority of risk positions in the futures market comes from hedging by producers and consumers. In the over-the-counter market, banks and financial institutions offer swaps and derivative instruments for hedgers to lock in price risk. The path of the open interest metric is a function of market growth.

If natural gas is going to trade in a narrow range over the coming weeks, buying dips when the price looks awful and taking profits during price recoveries will be the optimal approach to grinding out profits in the natural gas market. While the futures and futures options offered on the NYMEX division of the CME offer the most direct route to trading the energy commodity, the Velocity Shares 3X Long Natural Gas ETN product (UGAZ) and its bearish counterpart (DGAZ) provide an alternative for those who do not trade futures. The fund summary for UGAZ states:

“The investment seeks to replicate, net of expenses, three times the performance of the S&P GSCI Natural Gas Index ER. The index comprises futures contracts on a single commodity and is calculated according to the methodology of the S&P GSCI Index.”

Most recently, the price of June futures rose from $2.477 on April 25 to $2.647 on May 10, a rise of 6.86%.

Source: CQG

Over the same period, the price of UGAZ rose from $21.92 to $26.46 per share or 20.7% which is three times the rise in the price of the June futures on a percentage basis. The bearish DGAZ ETN product is the inverse of the UGAZ product. Both of these products are subject to time decay, which is the cost of the leverage, so they are only appropriate for short-term positions in the natural gas market.

The latest inventory report in the natural gas market was not bearish, but the price is not exploding to the upside as it did not implode to the downside after it broke through a technical resistance level in April. It looks like the energy commodity will trade in a range and buying on weakness and selling on strength will be the best way to enjoy the spring and early summer over the coming weeks.

The Hecht Commodity Report is one of the most comprehensive commodities reports available today from the #2 ranked author in both commodities and precious metals. My weekly report covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. I just reworked the report to make it very actionable!

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.

The author trades natural gas futures and derivative products from time to time
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🛢️ Natural Gas Prices In The Permian Flip Negative Again
« Reply #830 on: May 23, 2019, 01:06:34 AM »
https://oilprice.com/Energy/Energy-General/Natural-Gas-Prices-In-The-Permian-Flip-Negative-Again.html

Natural Gas Prices In The Permian Flip Negative Again
By Tsvetana Paraskova - May 22, 2019, 11:00 AM CDT


Natural gas prices at the Waha hub in West Texas are negative again this week, for the first time since plunging to an all-time low of minus $4.28 per million British thermal units (MMBtu) in early April, according to data compiled by Reuters.   

On Wednesday, next-day natural gas prices at the Waha hub in the Permian dipped to below zero—to minus $0.40 per MMBtu, for the first negative reading since early April.

According to Reuters estimates, Waha natural gas prices averaged just $0.92 per MMBtu so far in 2019, compared to $2.10 in 2018 and a five-year average of $2.80 between 2014 and 2018.

In early April, prices at the Waha hub plummeted to record low negative levels, as pipeline constraints and problems at compressor stations at one pipeline stranded gas produced in the Permian.

Gas production in the Permian has been rising in lockstep with crude oil production, and even though gas takeaway capacity has attracted less media attention, pipeline constraints for natural gas are similar to those of crude oil pipeline capacity.
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The natural gas takeaway capacity constraints have resulted in more gas flaring in the Permian on the one hand, and in a record-high spread between the Waha gas hub price and the U.S. benchmark Henry Hub in Louisiana, on the other hand.

The very low natural gas prices in the Permian are dragging down exploration and production (E&P) investment returns in the most prolific U.S. shale oil basin, Moody’s said in a report last month.   

The midstream constraints for oil and gas transportation in West Texas and New Mexico have been limiting exploration and production volumes and weakening the realized oil and natural gas prices for producers, Moody’s said in early April.

Case in point: Apache Corporation said in April that it had temporarily delayed natural gas production at its Alpine High play in the Permian in late March to mitigate the impact of the extremely low prices at the Waha hub.

By Tsvetana Paraskova for Oilprice.com
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🛢️Oil Rig Count Falls Amid Oil Price Correction
« Reply #831 on: Today at 12:07:26 AM »
https://oilprice.com/Energy/Energy-General/Oil-Rig-Count-Continues-To-Plunge.html

Oil Rig Count Falls Amid Oil Price Correction
By Julianne Geiger - May 24, 2019, 12:20 PM CDT


The the number of active oil and gas rigs fell again in the United States this week according to Baker Hughes, after a string of losses in the weeks prior, keeping the overall rig count well below year-ago levels for a seventh week in a row.

The total number of active oil and gas drilling rigs in the United States fell by 4 according to the report, with the number of active oil rigs falling 5 to reach 797 and the number of gas rigs increasing by 1 to reach 186.   

The combined oil and gas rig count is 983, with oil seeing a 62-rig decrease year on year and gas rigs down 12 since this time last year. The combined oil and gas rig count is down 76 year on year.

Year-to-date, the oil rig count has fallen from 877 active rigs on January 4 to 797, while gas rigs have fallen from 198 to 186 during that same time. Oil rigs are now at their lowest since March 2018, according to Baker Hughes.

At 12:33pm EST, moments before data release, WTI was trading up slightly by $0.04 (+0.07%) at $57.95, after taking a beating the day before. WTI is trading down more than $4 per barrel week on week as the China-US trade war dampens the mood in the market on top of increasing crude oil inventories in the United States.
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The Brent benchmark was trading up as well, by $0.30 (+0.45%) at $66.80—also more than a $4 per barrel drop week on week. 

US oil production ticked up slightly for week ending May 17, coming in at 12.2 million bpd—just 100,000 bpd off the April 26 high of 12.3 million bpd.

Canada’s rig count increased by 15. Canada’s oil rigs are now up 3 year on year, with gas rigs down 6 year on year.

WTI was trading up 0.41% on the day at 1:09pm EST, with Brent up 0.66%.

By Julianne Geiger for Oilprice.com
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