Oil prices have risen this week.
Crude oil closed at $ 83.87 a barrel in New York on Wednesday, hitting $ 83.87 a barrel, but fell to $ 8 to $ 81 in trading on Thursday.
Oil prices have risen sharply since last week’s rise of $ 0.072 a barrel, according to the AAA. The average price in the US on Wednesday was $ 3,369.
California has an average price of $ 4,531.
Texas is the cheapest at $ 3,018. All Texas states showed higher oil prices this week. North Texas averaged $ 2,998 to $ 0.083, West Central averaged $ 3,070 to $ 0.081, and East Texas averaged $ 3.058 to $ 0.085, the AAA reported.
Diesel prices in Texas averaged $ 3.579 and $ 3,262.
Rising prices for crude oil, gasoline and diesel may be due to rising demand.
The Energy Information Administration reported this week that oil production has dropped from 400,000 barrels to 426.5 million barrels, down from 61.6 million barrels a year ago and 123.5 million barrels since last June.
The EIA also reported that consumer prices had fallen, despite the high cost of consumer goods. As of November 2019, gasoline inputs have dropped by 5.37 million barrels, and demand is the highest since 2007.
As demand for petroleum products continues to rise, inflation has attracted the attention of oil and gas companies, according to Bloomberg. As the industry recovers from last year’s contract downturn and energy prices, banks are gradually lending more and more to US oil and natural gas producers.
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According to a survey conducted by Haynes and Bune LLP, most respondents said that the so-called loan base will reach 20% in the near future.
The findings point to a sharp improvement in the oil and gas sector last year, as the epidemic and global turmoil weakened energy prices and caused banks to stop lending.
An earlier Haynes and Bunnie survey, published in April, found that borrowing rates were flat or increased by 10 percent. Borrowing on crude oil and gas reserves, a key source of capital for explorers, usually involves two-year decisions, during which the bank reaffirms its commitment.
Alex Mills is a former president of the Texas Energy Production Coalition.