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Petroleum industry

Crude Oil Prices Gain Ahead of US Production Report

Strategic Insights

— 1 min read

US crude oil prices rose in Asia on Thursday ahead of an industry report on production trends, with investors awaiting the results of Baker Hughes' report on the number of oil rigs drilling in the US. The report, to be released on Friday, showed a decline in the number of rigs to 638, a drop of seven from the previous week. The New York Mercantile Exchange saw WTI crude for September delivery increase by 0.07% to $49.23 a barrel, while Brent crude for September delivery on the Intercontinental Exchange wavered between $56.16 and $57.09 a barrel before settling at $56.20, down 0.89 or 1.57% on the session.

Key Takeaways:

  • Crude oil prices rose in Asia on Thursday ahead of the Baker Hughes report on US production trends.
  • The number of oil rigs drilling in the US declined by seven to 638, according to the Baker Hughes report.
  • The US Energy Information Administration (EIA) reported a build in US crude inventories by 2.5 million barrels for the week ending July 17.
  • US crude inventories now stand at 463.9 million barrels, a level not seen at this time of year in at least 80 years.
  • The Cushing Oil Hub in Oklahoma saw a crude inventory increase by 813,000 barrels last week, above expectations.
  • Refineries operated at 95.5% of their operable capacity, leading to an increase in gasoline production.
  • The Opec decision to keep its production ceiling above 30 million barrels per day has been seen as an effort to undercut US shale producers.
  • US crude output has remained near 40-year highs over the last several months, despite a slight decline of 4,000 barrels per day last week.

Statistics:

  • Drilling rigs in the US declined to 638 in the Baker Hughes report.
  • US crude inventories rose by 2.5 million barrels for the week ending July 17, according to the EIA.
  • US crude inventories now stand at 463.9 million barrels.
  • Crude inventory at the Cushing Oil Hub increased by 813,000 barrels last week.
  • Refineries operated at 95.5% of their operable capacity last week.
  • Opec's production ceiling stands above 30 million barrels per day.

Sources:

  • Baker Hughes (BHI)
  • US Energy Information Administration (EIA)
  • New York Mercantile Exchange (NYMEX)
  • Intercontinental Exchange (ICE)
  • American Petroleum Institute (API)

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