Latest news with #PetroleumSupplyMonthly
Time of India
03-07-2025
- Business
- Time of India
Oil, gas activity contracted in Q2 on higher US steel tariffs
Activity in the US oil and gas sector in Texas, Louisiana and New Mexico contracted slightly in the second quarter of 2025, the Dallas Fed survey showed on Wednesday, as firms grappled with a jump in steel tariffs . The decrease comes after US President Donald Trump, who has encouraged US producers to "drill, baby, drill," doubled tariffs on steel and aluminum imports to 50 per cent from 25 per cent in early June. Roughly a quarter of all steel used in the US is imported, while half of all aluminum used in the US is imported. Investors have navigated significant volatility in the second quarter, with US crude futures dropping to a four-year low of $57.13 a barrel on May 5 and then gaining to $75.14 on June 18, the highest level since January, according to data from LSEG. As prices dropped, oil and gas production decreased slightly last quarter, the Dallas Fed survey showed. Almost half of the executives surveyed expect to drill fewer wells in 2025 than they planned at the start of the year, while a quarter said they expect the number of wells they drill to decrease significantly. Twenty-seven percent of firms said the recent jump in US steel import tariffs to 50 per cent from 25 per cent will lead to them drilling slightly fewer wells. "It's hard to imagine how much worse policies and D.C. rhetoric could have been for US exploration and production companies," an exploration and production executive said. "We were promised by the administration a better environment for producers but were delivered a world that has benefited OPEC to the detriment of our domestic industry." The Organization of the Petroleum Exporting Countries and its allies have made a radical change in policy this year, ramping up output as the group looks to regain market share after several years of production cuts. "The Liberation Day chaos and tariff antics have harmed the domestic energy industry," another executive said. "Drill, baby, drill will not happen with this level of volatility. Companies will continue to lay down rigs and frack spreads." Results from the Dallas Fed contrast with recent data released by the Energy Information Administration. US crude oil production hit a record 13.47 million barrels per day in April, up from 13.45 million bpd in March, according to data released on Monday by the EIA as part of its Petroleum Supply Monthly series. 'A lengthy downturn' Costs among oilfield service firms rose at a slightly faster pace in the second quarter compared with the first quarter, the survey showed. The rising costs from steel and aluminum tariffs are being passed on to customers, an oilfield service firm executive noted. Meanwhile, more than half of executives expect slightly less customer demand over the next year as the hike in steel import tariffs is set to weigh on oilfield service demand. "The numerous negative tailwinds - tariffs, oversupply of oil, consolidation and turmoil surrounding economic policy - will have significant impact on the domestic energy sector," an oilfield service firm executive said. "A lengthy downturn is the logical outcome." Companies expected a West Texas Intermediate oil price of $68 a barrel at year-end 2025, and a Henry Hub natural gas price of $3.66 per million British Thermal units. Data was collected June 18-26. Of the respondents, 91 were exploration and production firms and 45 were oilfield services firms.
The Star
01-07-2025
- Business
- The Star
Oil edges down on easing Middle East risks but gains for a second month
HOUSTON: Oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August. Both Brent and U.S. crude oil benchmarks posted their biggest weekly declines since March 2023 last week but rose for the second consecutive month, gaining around 6% and 7% respectively. Brent futures settled down 16 cents, or 0.2%, to $67.61 a barrel and expired on Monday. The more active September contract ended at $66.74. U.S. West Texas Intermediate crude settled down 41 cents, or 0.6%, at $65.11 a barrel. A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 sent prices above $80 a barrel before sliding back to $67. "This ceasefire that was quickly engineered appears to be holding up, so the supply risk premium that was in place is continuing to be withdrawn in a rapid fashion," said John Kilduff, a partner at Again Capital. Meanwhile, U.S. crude oil production hit a record 13.47 million barrels per day in April, up from 13.45 million bpd in March, according to data released by the Energy Information Administration as part of its Petroleum Supply Monthly series. The record U.S. oil production was adding to the bearish sentiment on Monday, Kilduff added. OPEC+ SET TO BOOST PRODUCTION IN AUGUST Four OPEC+ sources told Reuters last week that the group was set to boost production by 411,000 bpd in August after similar increases for May, June and July. If the increase is agreed, it would bring the total rise in supply from OPEC+ to 1.78 million bpd so far this year, equivalent to over 1.5% of total global demand. "I believe this potential supply pressure remains under-priced, leaving crude vulnerable to further weakness," said Ole Hansen, head of commodity strategy at Saxo Bank. The oil producer group is set to meet again on July 6. Some market tightness remains despite rising output, however, said Giovanni Staunovo, analyst at UBS. A Reuters survey found that OPEC oil output rose in May, but gains were limited by cuts by countries that had previously exceeded their quotas. Saudi Arabia and the United Arab Emirates, meanwhile, made smaller increases than allowed. Kazakhstan, which has persistently exceeded quotas set by OPEC+, may exceed its previous oil production forecast by around 2% this year following an upgrade to output at its largest Caspian oilfields, Reuters calculations, based on data from state-owned energy company KazMunayGaz, showed. A survey of 40 economists and analysts in June forecast Brent crude will average $67.86 per barrel in 2025, up from May's $66.98 forecast, while U.S. crude is seen at $64.51, above last month's $63.35 estimate. - Reuters
New Straits Times
01-07-2025
- Business
- New Straits Times
Oil edges down on easing Middle East risks but gains for a second month
HOUSTON: Oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August. Both Brent and US crude oil benchmarks posted their biggest weekly declines since March 2023 last week but rose for the second consecutive month, gaining around 6 per cent and 7 per cent respectively. Brent futures settled down 16 cents, or 0.2 per cent, to US$67.61 a barrel and expired on Monday. The more active September contract ended at US$66.74. US West Texas Intermediate crude settled down 41 cents, or 0.6 per cent, at US$65.11 a barrel. A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 sent prices above US$80 a barrel before sliding back to US$67. "This ceasefire that was quickly engineered appears to be holding up, so the supply risk premium that was in place is continuing to be withdrawn in a rapid fashion," said John Kilduff, a partner at Again Capital. Meanwhile, US crude oil production hit a record 13.47 million barrels per day in April, up from 13.45 million bpd in March, according to data released by the Energy Information Administration as part of its Petroleum Supply Monthly series. The record US oil production was adding to the bearish sentiment on Monday, Kilduff added. OPEC+ SET TO BOOST PRODUCTION IN AUGUST Four OPEC+ sources told Reuters last week that the group was set to boost production by 411,000 bpd in August after similar increases for May, June and July. If the increase is agreed, it would bring the total rise in supply from OPEC+ to 1.78 million bpd so far this year, equivalent to over 1.5 per cent of total global demand. "I believe this potential supply pressure remains under-priced, leaving crude vulnerable to further weakness," said Ole Hansen, head of commodity strategy at Saxo Bank. The oil producer group is set to meet again on July 6. Some market tightness remains despite rising output, however, said Giovanni Staunovo, analyst at UBS. A Reuters survey found that OPEC oil output rose in May, but gains were limited by cuts by countries that had previously exceeded their quotas. Saudi Arabia and the United Arab Emirates, meanwhile, made smaller increases than allowed. Kazakhstan, which has persistently exceeded quotas set by OPEC+, may exceed its previous oil production forecast by around 2 per cent this year following an upgrade to output at its largest Caspian oilfields, Reuters calculations, based on data from state-owned energy company KazMunayGaz, showed. A survey of 40 economists and analysts in June forecast Brent crude will average US$67.86 per barrel in 2025, up from May's US$66.98 forecast, while US crude is seen at US$64.51, above last month's US$63.35 estimate.
Business Times
30-06-2025
- Business
- Business Times
Oil edges down on easing Middle East risks but gains for a second month
[HOUSTON] Oil prices edged down on Monday as investors weighed easing Middle East risks and a possible Opec+ output increase in August. Both Brent and US crude oil benchmarks posted their biggest weekly declines since March 2023 last week but rose for the second consecutive month, gaining around 6 per cent and 7 per cent respectively. Brent futures settled down 16 cents, or 0.2 per cent, to US$67.61 a barrel and expired on Monday. The more active September contract ended at US$66.74. US West Texas Intermediate crude settled down 41 cents, or 0.6 per cent, at US$65.11 a barrel. A 12-day war that started with Israel targeting Iran's nuclear facilities on June 13 sent prices above US$80 a barrel before sliding back to US$67. 'This ceasefire that was quickly engineered appears to be holding up, so the supply risk premium that was in place is continuing to be withdrawn in a rapid fashion,' said John Kilduff, a partner at Again Capital. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Meanwhile, US crude oil production hit a record 13.47 million barrels per day in April, up from 13.45 million bpd in March, according to data released by the Energy Information Administration as part of its Petroleum Supply Monthly series. The record US oil production was adding to the bearish sentiment on Monday, Kilduff added. Opec+ set to boost production in August Four Opec+ sources told Reuters last week that the group was set to boost production by 411,000 bpd in August after similar increases for May, June and July. If the increase is agreed, it would bring the total rise in supply from Opec+ to 1.78 million bpd so far this year, equivalent to over 1.5 per cent of total global demand. 'I believe this potential supply pressure remains under-priced, leaving crude vulnerable to further weakness,' said Ole Hansen, head of commodity strategy at Saxo Bank. The oil producer group is set to meet again on July 6. Some market tightness remains despite rising output, however, said Giovanni Staunovo, analyst at UBS. A Reuters survey found that Opec oil output rose in May, but gains were limited by cuts by countries that had previously exceeded their quotas. Saudi Arabia and the United Arab Emirates, meanwhile, made smaller increases than allowed. Kazakhstan, which has persistently exceeded quotas set by Opec+, may exceed its previous oil production forecast by around 2 per cent this year following an upgrade to output at its largest Caspian oilfields, Reuters calculations, based on data from state-owned energy company KazMunayGaz, showed. A survey of 40 economists and analysts in June forecast Brent crude will average US$67.86 per barrel in 2025, up from May's US$66.98 forecast, while US crude is seen at US$64.51, above last month's US$63.35 estimate. REUTERS
Bloomberg
30-06-2025
- Business
- Bloomberg
US Diesel Demand in April Stronger Than Expected Despite Tariffs
US diesel demand, a closely watched measure of the country's economic health, was higher in April than early weekly estimates, the Energy Information Administration said in its monthly report. Distillate fuel oil demand was 3.88 million barrels a day in April, according to the agency's latest Petroleum Supply Monthly report released Monday. That is 4.7% higher than early estimates published by the agency in its Wednesday weekly report and 2.2% higher than April 2024. April was a volatile month for diesel futures after President Trump announced sweeping tariffs on April 2, causing prices to tank.
