Drilling contractors idled oil rigs for the 17th straight week, bringing the total count down to the lowest level in more than five years.
U.S. supplies may peak in April, prices need to stay low for longer to prompt slower output growth, Goldman Sachs Group Inc. said in an e-mailed report on Monday. Just yesterday we witnessed futures surge 6.1 percent, the most in two months, after Saudi Arabia raised prices for crude shipments to Asia and we found out Iran wont be producing its additional 1 million barrels at least in the next 6 months.
Production saw a plateau last week as was the first time in quite a while that production didn’t make a new record.
U.S. crude production dropped 36,000 barrels a day to 9.39 million in the week ended March 27, the first decline since January. That’s down from 9.42 million on March 20, the most in weekly estimates that started in January 1983.
The EIA cut its U.S. crude output projection for this year in its monthly Short-Term Energy Outlook on Tuesday. Production will average 9.23 million barrels a day in 2015, down 120,000 from the March estimate.
“U.S. crude oil production is expected to peak this year in the second quarter and then decline in the third quarter, before picking up again toward the end of the year as projected higher crude prices in the second half of 2015 make drilling more profitable,” EIA Administrator Adam Sieminski said in an e-mailed statement.
Rigs targeting oil in the U.S. fell by 11 to 802, the smallest decline since December, Baker Hughes Inc. said on its website April 2.
The recent increase in oil production has been attributed to additional production from unconventional oil production in the U.S.
Brent crude current price at $59.05 while WTI current price is at $53.90
* the crude oil prices quoted here are subject to price fluctuations and may change. The writer of this blog will not be held responsible for any financial decision made on it.
Courtesy
http://oilandgas.einnews.com/article/258734603/xeLrxVO4zTwqguAG
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