OIL PRICE: ABOVE $55 YET
OGJ, BLOOMBERG - The light, sweet crude oil prices for both May and June fell on the New York market Apr. 12 but held above $53/bbl. Prices fell after the US Energy Information Administration reported US oil production increased 36,000 b/d for the week ended Apr. 7.
US production has increased every week for 2 months. If US production continues to rise at the current pace, it could "at least offset" cutbacks by the Organization of Petroleum Exporting Countries, Tariq Zahir, managing member of Tyche Capital Advisors, told the Wall Street Journal.
"All the rigs that have come online are starting to actually produce oil," Zahir said.
The Petroleum Status Report showed US oil production of 9.235 million b/d as of Apr. 7. The Lower 48 accounted for 35,000 b/d of the weekly gain. Total Lower 48 production was estimated at 8.7 million b/d as of Apr. 7, EIA said.
Alaska production rose 1,000 b/d for the week ended Apr. 7 to a total of 534,000 b/d.
EIA said US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, declined 2.2 million bbl to 533.4 million bbl total for the week ended Apr. 7 compared with Mar. 31.
Separately, the American Petroleum Institute estimated crude inventories lost 1.3 million bbl for the week ended Apr. 7.
The crude oil contract for May delivery on the New York Mercantile Exchange dropped 29¢ on Apr. 12 to close at $53.11/bbl. The June contract fell 27¢ to $53.52/bbl.
The natural gas price for May rose nearly 4¢ to a rounded $3.19/MMbtu. The Henry Hub cash gas price closed Apr. 12 at $2.99/MMbtu, down 9¢.
Heating oil for May was up less than 1¢ to remain at a rounded $1.65/gal. Reformulated gasoline stock for oxygenate blending for May fell 1.6¢ to a rounded $1.74/gal.
The Brent crude contract for June on London's ICE declined 37¢ to $55.86/bbl. The July contract was down 30¢ to $56.30/bbl. The gas oil contract for May settled at $498.50/tonne, up $4.
The average price for OPEC's basket of benchmark crudes on Apr. 12 was $53.67/bbl, up 31¢.
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GAZPROM - The parties discussed relevant issues related to bilateral cooperation, including the Baltic LNG project. Emphasis was placed on the priority measures aimed at developing a joint design concept (pre-FEED).
BHGE - U.S. Rig Count is up 11 rigs from last week to 1,063, with oil rigs up 8 to 869, gas rigs up 4 to 193, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 13 rigs from last week to 195, with oil rigs up 8 to 127 and gas rigs up 5 to 68.
REUTERS - Brent crude futures had risen $1.02 cents, or 1.3 percent, to $81.28 a barrel by 0637 GMT. The contract dropped 3.4 percent on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown. U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session. WTI is on track for a 3.5 percent drop this week.
EIA - Brent crude oil spot prices averaged $79 per barrel (b) in September, up $6/b from August. EIA expects Brent spot prices will average $74/b in 2018 and $75/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.