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Why the low Drilling Rig count? – Oil Correction Or investors demands?

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Producers have pledged to pare spending after investors wanted to see companies demonstrate the long-term viability with positive cash flow. So U.S. shale drillers are cutting back on spending to deliver returns for shareholders, that has oil stocks under pressure thus keeping spending in check.

Some companies have started trimming the workforce, Pioneer Sands LLC, acquired by Pioneer Natural Resources in 2012, will shut down operations at its plant in Brady, Texas, which currently employs 219 employees, this even after oil has rebounded from the lows.

Is the China, U.S Trade war also hurting the oil markets? Oil went downward with other global markets as concerns grew that the China-U.S. trade conflict was fast turning into a cold war between the world’s two largest economies.

Rising U.S. crude production has also weighed on oil prices. A shale boom has helped make the United States the biggest oil producer in the world, ahead of Saudi Arabia and Russia. – https://www.cnbc.com

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Commodities

Crude Oil slipping half a percent to the weakest closing price since Feb

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U.S. West Texas Intermediate crude futures settled 25 cents lower at $53.25 per barrel, slipping half a percent to the weakest closing price since Feb. 12. Earlier in the session, WTI hit a session high of $54.63 per barrel.

Concerns that a U.S.-China trade war, and threats of tariffs on Mexico from the United States, would diminish global crude demand, however, weighed on oil prices.

“Focus has shifted from the supply to the demand side as a U.S.-China trade agreement has proven elusive and as worries over the debilitating effects of tariffs on global economic growth have now shifted to Mexico,” Jim Ritterbusch of Ritterbusch and Associates said in a note. – read more

Most of the movement for oil has been based on “economic concerns of weakened growth because of the potential impact of [the] trade situation,” said James Williams, energy economist at WTRG Economics. U.S. tariffs on Mexican goods have added to the concerns about China, he said. – marketwatch.com

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Commodities

Crude prices slumped to a three-month low on concerns with Trump’s trade policy

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Oil Opens a New Window. prices slumped to a three-month low Friday as concerns about President Trump’s trade policy Opens a New Window. and the slowdown in the Chinese economy Opens a New Window. cast doubt on the outlook for global demand.

Front-month Brent crude futures, the international benchmark, traded down 2.6% at $63.60, having earlier dipped to their lowest level since mid-February. U.S. benchmark WTI dropped 2.4% to $55.25, its cheapest price since early March. read more @ FoxBiz

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