Connect with us
Advertise With Us

BUSINESS

Oil Prices Appreciate On Falling US Drilling Activity

Published

on

Oil prices inched up yesterday as Saudi oil minister, Khalid al-Falih, assured that an end to OPEC-led supply cuts was unlikely before June and a report of falling U.S. drilling activity.

Despite this, markets were somewhat held back after U.S. employment data raised concerns that an economic slowdown in Asia and Europe was spilling into the United States, where growth has so far still been healthy.

The U.S. West Texas Intermediate (WTI) crude oil futures were at $56.29 per barrel up 22 cents, or 0.4 per cent from their last close, while Brent crude futures were at $65.91 per barrel, up 17 cents, or 0.3 per cent.

Oil markets have been supported this year by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated allies like Russia known as the OPEC+ alliance.

The OPEC+ has pledged to cut 1.2 million barrels per day (bpd) in crude supply since the start of the year to tighten markets and prop up prices.

The group would meet in Vienna on April 17-18, with another gathering scheduled for June 25-26, to discuss supply policy.

Saudi oil minister, Khalid al-Falih told Reuters on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April.

“We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward,” Falih said.

Prices were also supported by U.S. energy services firm Baker Hughes’ latest weekly report showing the number of rigs drilling for new oil production in the United States fell by nine to 834.

High drilling activity last year resulted in a more than 2 million bpd rise in production , to a record 12.1 million bpd reached this February.

“This is the third straight week of decline after a number of oil producers trimmed their spending outlooks for 2019,” ANZ bank said yesterday.

The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect U.S. crude output to rise above 13 million bpd soon.

Meanwhile, the United Arab Emirates, UAE, has assured it would continue to deliver on crude oil supply cuts under a producer agreement until the global market is re-balanced, Minister of Energy and Industry, Suhail al-Mazrouei said on Sunday.

The OPEC, along with major non-OPEC producers such as Russia have pledged to reduce their oil production to cut into a supply glut.

Advertisement
Comments

MOST READ

NEWS10 mins ago

66,725 Voters To Participate In Plateau By-election – INEC

The Independent National Electoral Commission (INEC) says 66,725 voters will be participating in the by-election into the Pengana Constituency of...

NEWS17 mins ago

NCC Facilitates Spectrum Infrastructure To Boost Broadband Penetration

The Nigerian Communications Commission (NCC) says it is working on ensuring the availability of spectrum to boost broadband deployment and...

NEWS24 mins ago

Call For Herders To Return: Northern Youths Welcome PMB’s Intervention

The Coalition of Northern Groups (CNG) has said that it is encouraged by the sudden response by President Muhammadu Buhari...

FRSC at a road accident scene FRSC at a road accident scene
NEWS25 mins ago

Auto Crash Claims 2, Injures 6 Persons In Anambra

An accident involving two vehicles on Enugu-Onitsha expressway in Anambra on Friday claimed the lives of two persons while six...

XIREA Apparels Ultramodern Garment Manufacturing Facility XIREA Apparels Ultramodern Garment Manufacturing Facility
NEWS47 mins ago

XIREA Apparels To Launch World-Class Ultramodern Garment Manufacturing Facility

…Plans To Employ 50,000 Nigerians by 2030 In a bid to boost the Nigerian economy, XIREA Apparels, a new company...

NEWS7 hours ago

Corruption Cuts Across Sectors – ICPC Chairman

Prof. Bolaji Owasanoye, Chairman, Independent Corrupt Practices and Other Related Offences Commission (ICPC), on Friday said prevalence of corruption in...

CRIME7 hours ago

Court Remands Father Accused Of Sexually Assaulting 3 Daughters

An Ikeja Chief Magistrates’ Court on Friday ordered that a 57-year-old father, Mr Mojeeb Fashola, accused of sexually assaulting his...

Advertisement

MOST POPULAR

%d bloggers like this: