Oil Market Cherry Choice US Details

(The opinions and opinions expressed in this article are from the sources quoted and do not necessarily reflect the views of Rigzon or the author.)

Released and missed this week’s edition of the Oil and Gas Industry, Rigzon’s regular market viewers will take a closer look at US details, LLL and Conco Philipp’s major Permian Agreement, Covy developments and more. Read on to find out.

Rigzon: What were some of the market promises that really happened last week – and which were not?

Barani Krishnan, senior commodity analyst at investing.com Interestingly, even as oil prices rose last week, oil markets seem to be picking up US stocks to keep pace with crude prices. Another 16 percent of oil production off the coast of Mexico in the United States, after the Ida hurricane, was unprecedented at the time.

John Donnel, Managing Director, B. Riley Consulting Service Demand is strong and production in the Gulf of Mexico has not returned to pre-Hurricane Ida levels, so the month-to-month WTI contract has risen sharply since July. The total production in the third quarter exceeded 20 million barrels per day on a four-week basis, the first time since 1Q20. Overall, U.S. production remains below 11 million barrels a day, with only about a third recovering from recent hurricanes. As a result, raw materials are down for the sixth straight week and are below normal levels in 2019. In general, supply and demand bases will continue to be supportive of commodity prices until the end of the year.

Michael Osina, Grant Torton National Partner in Power – Tax Rig calculations continue to unfold as many experts predict more stable oil prices. Covi continues to be a symbol for the energy industry, as it leaves much doubt about the impact of vaccines on the travel industry. However, Biden has announced a relaxation of travel restrictions for vaccinated foreign passengers, which could have a positive impact on the economy and the energy industry.

Rigzon: What were some of the market surprises?

Krishna: U.S. crude oil reserves fell 3.481 million barrels a week to September 17, according to Energy Information Administration. Analysts at Investing.com predict a 2.45 million barrel drop for the week. Last week, as of September 10, due to iodine disruption, almost 6,422 million barrels of balloons were expected. Reducing more than expected for the second week in a row will, in fact, improve the price of raw materials, no doubt. According to the IAA, the stockpile of diesel and heating oil fell by 2.55 million barrels last week, up from 1.11 million barrels. Distributed goods fell 1.69 million barrels last week. Arguably, this also helps the issue of fuel prices.

What is puzzling is the way in which the market decided to completely lose its stockpile of 3.47 million barrels last week, compared to the projections to attract 1.47 million barrels. Gasoline is a more important weekly information point than distribution, and sometimes even brutal. It forms the largest demand for fuel. Demand for gasoline dropped from 9.4 million barrels a day to 8.8 million barrels a day. Gasoline reserves fell 1.86 million last week. During this time, inflation has completely subsided. And what did the market do? On Wednesday, he decided to reward the bulls with a two percent price increase.

Regarding the impact of Ida, 294,414 barrels of equivalent production off the coast of Mexico in the United States remained closed by 16 percent until Wednesday. While the subsequent disruption was somewhat surprising, it was still slightly lower than last week’s 25 percent.

Cave ConocoPhillips acquired farming and production in the Permanian Basin for $ 9.5 billion earlier this week. The RDS has been at the forefront of its efforts to reduce its carbon footprint over time, but it was surprising to see Koncon enter such a large-scale transaction with its recent acquisition and return of cash to shareholders. The 10-year plan was launched in June. That said, the copy has been added to the regular dividend and the transaction has been well received by the market. The company has updated its long-term forecasts and expects to reduce greenhouse gas emissions over the next 10 years, leading to more free cash flow and higher inflation. The agreement provides relatively low prices for Permanent Basin assets and reinforcement benefits for operators.

Osina: Industry experts have expressed interest in the new government’s tax policy as it affects the energy industry. In the most recent draft tax law, there were some significant flaws in the sign, including the cancellation of many oil and gas tax incentives. It is not clear whether this is off the table or simply canceled, as it will be a tough sale to convince enough support for those measures.

To contact the author, email andreas.exarheas@rigzone.com

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