Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Oil in Global Economy Series: Oil under selling pressure as rig counts rise

After the inventory report released last week unexpectedly signaled a draw down, the oil price moved higher only to suffer a setback from the Baker Hughes report released at the end of last week, which showed that the number of active oil rigs increased for a ninth consecutive week. After declining to just 316 in May last year, the numbers of operating rigs have doubled since then. As of last week’s report, the numbers of rigs operating in the United States have reached 631, the highest since September 2015. However, it is still down more than 60 percent from its peak in 2014. The oil production has reached 9.11 million barrels per day as of last week’s report, the highest level since early 2016. As the shale companies became better equipped to compete at a much lower price via cost cuttings, the production of oil in the United States have increased by 681,000 barrels per day since last summer.

Nevertheless, the backwardation in the oil market, which is currently at 51 cents per barrel, is suggesting the effectiveness of the OPEC deal in reducing supplies from the market. WTI is currently trading at $48 per barrel and we don’t expect the price to dip below $42 per barrel as the demand remains resilient.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

November 24 15:30 UTC Released

USECRI Weekly Index*

Actual

145.6 %

Forecast

Previous

145.6 %

November 24 14:45 UTC Released

US1st Half-Mth Infl YY*

Actual

54.6 %

Forecast

Previous

54.6 %

November 27 09:00 UTC 36543654m

ITExport Prices*

Actual

Forecast

Previous

111 %

November 27 09:00 UTC 36543654m

ITImport Prices*

Actual

Forecast

Previous

116.1 %

November 27 14:00 UTC 39543954m

MXTrade Balance, $*

Actual

Forecast

Previous

-1.886 Bln USD

November 27 14:00 UTC 39543954m

MXTrade Balance SA*

Actual

Forecast

Previous

-1.559 Bln USD

November 27 15:30 UTC 40444044m

USDallas Fed mfg bus index

Actual

Forecast

Previous

27.6

November 27 21:00 UTC 43744374m

KRBOK Manufacturing BSI*

Actual

Forecast

Previous

87 Bln BRL

November 28 00:00 UTC 45544554m

BRCentral Govt Balance

Actual

Forecast

Previous

-22.725 Bln BRL

November 28 07:00 UTC 49744974m

DEGDP Growth QQ* Advance

Actual

Forecast

Previous

10.7 %

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.