The API Director of Upstream Erik Milito released the following statement regarding the Obama administration’s decision to deny Arctic offshore development extension requests and scheduled 2016 and 2017 Arctic lease sales

U.S. Rig Count is down 8 rigs from last week to 787, with oil rigs down 10 to 595, gas rigs up 3 to 192, and miscellaneous rigs down 1 to 0.

Brent crude was down 24 cents at $49.00 a barrel. Prices have more than halved from June 2014. U.S. crude fell 39 cents to $46.27 a barrel.

“Today’s vote starts us down the path to a new era of energy security, saving consumers billions and creating jobs across the country,” said API President and CEO Jack Gerard. “American producers would be able to compete on a level playing field with countries like Iran and Russia, providing security to our allies and accelerating the energy revolution that has revitalized our economy.

Crude oil production in November from seven major US shale plays is expected to drop 93,000 b/d to 5.12 million b/d. That’s back up to the same level forecast for September after a somewhat smaller decline was projected for October.

"Considerable uncertainties" surrounded the U.S. economic outlook, particularly the drag on exports from slowing global growth, low investment caused by the decline in oil prices and a “disappointing” recent drop in U.S. job growth.

The probability that the world's biggest economy will enter a recession in the next 12 months jumped to 15 percent, its highest level since October 2013, according to economists surveyed Oct. 2-7 by Bloomberg. The median had held at 10 percent for 13 consecutive months.

The US is poised to sail warships close to China’s artificial islands in the South China Sea as a signal to Beijing that Washington does not recognise Chinese territorial claims over the area.

EIA estimates that total U.S. crude oil production declined by 120,000 barrels per day (b/d) in September compared with August. Crude oil production is forecast to decrease through mid-2016 before growth resumes late in 2016. Projected U.S. crude oil production averages 9.2 million b/d in 2015 and 8.9 million b/d in 2016.

U.S. Rig Count is down 14 rigs from last week to 795, with oil rigs down 9 to 605, gas rigs down 6 to 189, and miscellaneous rigs up 1 to 1.