WTI Crude
48.61
Brent Crude
50.78
Natural Gas
3.24

U.S. drillers add rigs as oil oversupply seen balancing in 2016

News Article Sponsored by A1 Graphic Solutions

Facebooktwitterlinkedininstagrammail

Written by: By David Wethe, Bloomberg News

Click HERE to Read Article From Publisher


920x1240

Shale drillers continued bringing rigs back to work in U.S. oil fields at the fastest pace since last summer as production declines help ease a supply glut.

Rigs targeting crude in the U.S. rose by 10 to 351, after 11 were added last week, Baker Hughes Inc. said on its website Friday. Natural gas rigs were trimmed by 1 to 88 this week, bringing the increase for oil and gas to nine for a total of 440.

 U.S. crude output is at its lowest in more than two years after drillers from the Bakken formation in North Dakota to the Eagle Ford Shale in South Texas reduced spending to weather the worst price rout in a generation. Production fell by 194,000 barrels a day to 8.43 million in the week ended July 1, Energy Information Administration data show. The 2.3 percent drop was the biggest weekly decline since 2013.

“Steadily declining U.S. crude production continues to underpin our view that the global market has shifted from massive oversupply to broadly balanced in the second half,” Mike Wittner, head of oil market research at Societe Generale SA, said in a report.

America’s oil drillers have been mostly idling rigs since October 2014 as the world’s largest crude suppliers battle for market share. Oil has traded between $45 and $51 a barrel in the last month after almost doubling from a 12-year low in February amid supply disruptions and falling U.S. output.

The recovery has prompted American producers to begin returning drilling rigs to service, leading to speculation the decline in production will slow.


TAGS: Oil, Gas, Energy


News Article Email Sign-Up
Sending

Click HERE to Read Article From Publisher

south-VIP-ticket

Facebooktwitterlinkedininstagrammail