Tag Archive for: oilprices

ExxonMobil beats Q1 estimates as Permian and Guyana growth offset weak oil prices; EPS hits $1.76, net production up 20% after Pioneer deal.

Permian Basin growth fuels ExxonMobil’s quarterly success

First-quarter earnings at ExxonMobil (NYSE: XOM) topped analyst estimates as higher production in the Permian and offshore Guyana offset part of the lower realizations due to falling oil prices.

Despite the lower earnings compared to a year ago, Exxon expressed confidence that the structural and cost-saving measures of the past few years have prepared it to weather the uncertain market environment.

Exxon reported on Friday first-quarter earnings of $7.7 billion, down from $8.2 billion in the first quarter of 2024. Earnings per share (EPS) slipped to $1.76 from $2.06, but beat the consensus estimate of $1.73.

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Source: Oil & Gas 360

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US shale's not dead—just evolving. Despite low oil prices, innovation & resilience could spark a major comeback, says Energy Secretary Wright

Shale is about to make a comeback for the ages: Energy Secretary

Oil prices are sagging like a tired trampoline, and U.S. shale producers are feeling the bounce—just not in a good way. With WTI dancing around $60 and analysts wringing their hands over breakeven levels near $65, you’d be forgiven for assuming the shale patch was in full panic mode.

But U.S. Energy Secretary Chris Wright—former CEO of Liberty Energy and now the government’s top oil whisperer—seems utterly unbothered.

“The U.S. shale industry is going to survive and thrive,” Wright declared this week in Abu Dhabi, where optimism apparently flows as freely as the crude. “In 2015 and 2016 oil prices twice hit $28 [per barrel], and what happened? What did the U.S. shale industry do in that time—innovate, get smarter, drive their costs down, and that’s what’s happening right now.”

Now, we could roll our eyes—after all, shale execs are notorious for saying things like “we’re cash flow positive now, really!” right before announcing layoffs and asset sales. But what if Wright’s not just blowing smoke?

History favors shale’s prospects of survival

The shale industry did survive the 2014–2016 oil price collapse. Admittedly, it was barely. And there were some individual players that couldn’t keep their heads above water. But overall, US shale emerged leaner, meaner, and with a few more gray hairs. Costs dropped. Frac stages multiplied like rabbits. Wells got longer, and so did the breakeven charts in investor decks. Could we see a similar cycle of innovation again, or has innovation reached its peak? The latter scenario would be hard to argue.

But it’s possible. As Wright admitted, “investment decisions are going to be tailored if prices stay this low for a long period of time.” Translation: the rig count will take a hit, and Wall Street won’t be lining up to throw money at growth. But shale’s not dead.

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Source: Oil & Gas 360

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Crude oil prices were set for a third weekly rise due to concerns over supply after Trump threatened tariffs on Venezuelan crude and increased sanctions on Iran.

Oil prices set to extend winning streak on US sanction action

Crude oil prices set for their third weekly rise as concern grew about supply after President Trump threatened 25% tariffs on any country buying Venezuelan crude while stepping up sanctions on Iranian entities.

At the time of writing, Brent crude was trading at $73.91 per barrel while West Texas Intermediate was changing hands for $69.80 per barrel, both set to end the week about $1 per barrel higher than they started it.

Sparta Commodities analyst June Goh told Reuters that the potential loss of Venezuelan crude exports to the market due to secondary tariffs and the possibility that the same tariffs may be imposed on Iranian barrels has caused an apparent tightness in crude supply.

On Monday, President Trump said in an executive order that “On or after April 2, 2025, the United States may impose a tariff of 25 percent on all goods imported from any country that imports Venezuelan oil, whether directly from Venezuela or indirectly through third parties.”

This caught many traders and refiners off guard, especially in China, which is the biggest buyer of Venezuelan crude. It is also the biggest buyer of Iranian crude oil, which also came under attack from the Trump administration as soon as this administration took office.

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Source: Oil Price

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Oil prices climbed this week as OPEC+ committed to controlling supply while Trump continued his efforts to choke Iran's oil industry.

Oil Prices Upside ahead as Supply Comes into Focus

Oil prices climbed this week as OPEC+ committed to controlling supply. This is while Trump continued his efforts to choke Iran’s oil industry.

Buoyed by Trump’s continued pressure on Iran and OPEC+’s renewed efforts to send prices higher ahead of its April. This is before the meeting by committing to additional overcompensation plans. ICE Brent is creeping back closer to the $75 per barrel mark, posting its second weekly gain. The oil markets have become desensitized to US Federal Reserve meeting. With the awkward implementation of the 30-day ban on energy strikes between Russia and Ukraine, there might be further upside ahead for crude.

OPEC+ Rolls Out New Compensation Plans.

Confronted with continuous overproduction by its leading members, OPEC+ issued a new compensation plan with voluntary cuts lasting until June 2026, seeing 300-400,000 b/d output curtailments over the summer months with Iraq forced to cut the most.

US Sanctions First Chinese Teapot Refiner.

Ramping up the pressure on buyers of Iranian oil, the US Treasury Department announced new sanctions on entities linked to Iranian oil trade, adding a Chinese refiner (Shandong-based Shouguang Luqing Petrochemical) to the SDN list for the first time ever.

Oil Traders Become the New Drillers.

Global trading house Vitol agreed to buy stakes in West African oil and gas assets operated by Italy’s oil major ENI (BIT:ENI) for $1.65 billion, taking a 30% minority stake in the largest oil discovery of 2021, the Baleine field in Ivory Coast, as well as in Congolese LNG assets.

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Source: Oil Price

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Oil futures rose Thursday after Trump revoked a license allowing Chevron to produce oil in Venezuela, issued by the Biden administration.

Oil prices settle higher after Trump moves to end Venezuela crude deal

Oil prices settle higher on Thursday, finding support a day after President Donald Trump said he was revoking a license issued by the Biden. The administration that had allowed Chevron Corp. to produce oil in Venezuela.

Prices remained lower week to date. However, with U.S. tariffs on Canada and Mexico are expected to come into effect next week. Potentially hurting the outlook for the economy and for energy demand.

Trump’s reversal of the license allowing Chevron to operate in Venezuela could halt the company’s ability to export Venezuelan crude. It will be tightening global oil supplies, said George Pavel, general manager at trading platform Naga.com Middle East, in emailed commentary. WTI and Brent settled Wednesday at their lowest marks since Dec. 10, with recent pressure tied to worries that proposed tariffs by the Trump administration will undercut global growth. Prices for both WTI and Brent crude remained lower for the week and month to date.

Expectations for the future have taken a “meaningful dive,” reinforcing a growing concern that policy uncertainty, particularly related to tariffs and the Federal Reserve, is “bleeding into both consumer and business sentiment,” said Stephen Innes, managing partner at SPI Asset Management. “That’s a slow-burning macro headwind that could snowball into real economic weakness down the line.”

Latest U.S Data Why Oil prices settle higher

U.S. data this week showed an index of consumer confidence dropped 7 points in February to an eight-month low of 98.3.

“Tariffs and their broader impact on North American markets are at the forefront,”. Innes told MarketWatch. “Trump’s looming tariff threats against Canada and Mexico in March. It will be followed by planned broad duties in April, are turning up the heat on global trade tensions.”

At the same time, lower bond yields amid escalating trade tensions suggest markets are “bracing for a slowdown, not a surge in inflation,” Innes said.

Then there’s the “geopolitical wild card,” with the U.S. potentially gaining a significant stake in Ukraine’s mineral rights, he said. “There’s every reason to believe Washington will want to monetize those assets. That means pushing the Ukraine-Russia peace plan forward and ultimately pulling back on Russian sanctions, bringing more [oil] barrels back to market.”

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Source: Market Watch

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oil prices climb

Oil prices climb as Trump pledges to refill strategic petroleum reserve

The U.S. Administration will fill up fast the Strategic Petroleum Reserve (SPR) as oil prices climb, President Donald Trump said at an investment conference in Miami.

“We’ll fill it up fast, but it’s at the lowest level. When we made the transition, it was at the lowest level in history, ever recorded,” President Trump said.

“They put it all out because they thought they could keep gasoline prices down a little bit, just go past the election, and after that, they didn’t care,” the President added, criticizing Joe Biden’s administration for failing to curb the hikes in gasoline prices.

The government needs to refill the SPR because the strategic reserve plays a critical role in stabilizing the U.S. market during global supply disruptions.

The Biden administration released more than 180 million barrels of oil from the SPR starting in 2021, amid high gasoline prices. The Department of Treasury claims that these releases, along with coordinated international efforts, helped reduce gasoline prices by up to 40 cents per gallon in 2022.

SPR – Oil Prices Climb

The SPR currently houses 395 million barrels of crude—a figure that is about 250 million barrels less than oil in the SPR at the beginning of Joe Biden’s term in office. The Reserve’s total capacity is 714 million barrels of crude.

Also this week, President Trump promised tax cuts for oil and gas producers.

President Trump will enlist the help of Republicans in Congress to reduce the debt burden on households and companies, notably oil and gas producers, whom he will allow to expense 100% of capital spending.

Oil drillers, however, have signaled they had no immediate plans to boost production any further, unless global prices improved enough to motivate such a move.

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Source: Oil Price

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Oil prices have fallen for the second consecutive week, but a major bullish catalyst may be looming in early February.

Why oil prices could spike in February

Oil prices have fallen for the second consecutive week, but a major bullish catalyst may be looming in early February. So, Why oil prices could spike in February?

Oil prices will finish this week some $2 per barrel lower than a week ago as the January ICE Brent futures contract expires just below $77 per barrel. However, if Donald Trump’s February 1 deadline for Canada and Mexico leads to the US slapping punitive 25% sanctions, the second straight weekly decline could be cut short very quickly. If the threat does become a reality, the oil bulls will not stop until Brent is back above $80 per barrel.

Former IEA Employees Turn Against It. Just as the International Energy Agency came under severe criticism from Donald Trump due to its marked focus on climate change, a new report penned by the IEA’s former head of analysis identified 23 false assumptions in the organization’s peak-demand scenarios.

Investments into Clean Energy Hit New Record. Global investors invested $2.1 trillion into low-carbon energy for the first time on record in 2024. This is according to BloombergNEF. They achieved only 11% year-over-year growth. This is is slower than the 25% growth seen previously and only 37% of what is required to meet net zero emissions by 2050.

Cofee Is The New Cocoa of 2025.

Prices of arabica coffee continued to hit record highs this week as front-month ICE futures hit $3.74 per pound on Thursday. This is on the back of drought-hit tight supplies from Brazil and low coffee bean inventories from top roasters such as Nestle (SWX:NESN) or JDE Peet’s.

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Source: Oil Price

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Robust US economic data and a larger-than-expected crude inventory continue to bolster the outlook for the economy and oil demand.

Oil prices climb on OPEC data and a strong US economy

Crude oil prices climb higher today, after the release of production data from OPEC and Russia, showing both declined in December.

The recent employment survey released by the United States has unveiled a promising outlook for the economy, which has significant implications for the oil market. The data indicates that layoffs remain notably low, a trend that reflects not only a stable job market but also a growing confidence among employers. This stability is crucial, as it suggests that businesses are not only retaining their workforce but are also investing in their employees through retention strategies. Moreover, the survey highlights an increase in job openings, signaling that companies are expanding operations and seeking to hire additional talent. This surge in job availability is a strong indicator of economic vitality, as it reflects a demand for goods and services that often correlates with increased energy consumption.

The implications of these employment trends are particularly bullish for the oil market. As economic activity ramps up, the demand for oil typically rises in tandem, driven by the need for transportation fuels, industrial energy, and heating. Additionally, a robust job market generally translates to higher consumer confidence, which can lead to increased spending on travel and leisure activities, further boosting oil consumption. Investors are likely to view these positive employment figures as a harbinger of sustained economic growth, which could lead to a tighter oil supply-demand balance. As such, the synergy between a healthy labor market and the oil industry may serve to reinforce upward price pressures, making the current economic landscape particularly favorable for oil market stakeholders.

The Latest Market Update on Oil Prices Climb

As of the latest market update, Brent crude oil is currently trading at $77.34 per barrel, reflecting a notable increase from its opening price earlier in the trading session. This upward movement in Brent crude prices can be attributed to a variety of factors, including geopolitical tensions, supply constraints, and fluctuations in global demand. Investors and analysts are closely monitoring these developments, as they have significant implications for both the energy market and the broader economy. The ongoing recovery from pandemic-related disruptions and shifts in consumption patterns are also contributing to the volatility observed in oil prices.

In parallel, West Texas Intermediate (WTI) crude oil is tradeable at $74.65 per barrel, also showing an increase from its opening value. The rise in WTI prices is indicative of the overall bullish sentiment in the oil market, driven by expectations of recovering demand as economies continue to emerge from pandemic restrictions. Furthermore, factors such as inventory levels, production cuts by OPEC+, and seasonal variations in consumption can heavily influence WTI pricing. Market participants are to remain vigilant as these variables evolve, as they will play a crucial role in shaping future oil price trajectories and influencing strategic decisions for businesses across various sectors.

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Source: Oil Price

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Trump's return may spark a boom in US natural gas, as LNG exports grow, tech demand rises & companies shift focus from oil to gas production.

Drill, Baby, Drill 2.0: Why Trump’s return will bring blockbuster years for natural gas

In October 2008, the economy reeling from the onset of the Great Recession. Oil prices having spiked to $147 per barrel ($211 in today’s money). Vice Presidential candidate Joe Biden was asked during a debate to contrast his party’s energy policy with that of the Republicans. Biden said that their “only answer is drill, drill, drill. Drill baby we must, but it will take 10 years for one drop of oil to come out of any of the wells that are going to be drilled.”

His vice presidential opponent Sarah Palin pounced; “The chant is ‘drill, baby, drill.’ And that’s what we hear all across this country… because people are so hungry for those domestic sources of energy to be tapped into.”

Biden and Obama won that election, though Biden woefully underestimated American ingenuity. During the Obama years drillers boosted natural gas production by 45% to 92 billion cubic feet per day (bcfd), while oil output more than doubled to 9 million barrels per day (bpd).

During the 2008 presidential campaign, Sarah Palin, the then-governor of Alaska and the Republican vice presidential nominee, seized the opportunity to emphasize the urgent demand for domestic energy resources. In her rallying cry, she declared, “The chant is ‘drill, baby, drill.. And that’s what we hear all across this country. It is because people are so hungry for those domestic sources of energy to be tapped into”. This statement resonated with many Americans who were increasingly concerned about rising energy prices and the nation’s reliance on foreign oil. Palin’s remarks highlighted a growing sentiment among the electorate, advocating for the exploration and utilization of domestic energy reserves as a means to achieve energy independence and alleviate economic pressures faced by households across the nation.

Fervent Calls for Increased Drilling

Despite these fervent calls for increased drilling, Joe Biden and Barack Obama ultimately emerged victorious in the 2008 election. Biden underestimated the resilience and adaptability of American ingenuity in the energy sector. The Obama administration witnessed a remarkable transformation in energy production. The advances in technology and drilling techniques led to a significant surge in domestic output. Natural gas production soared by an impressive 45%. It was reaching approximately 92 billion cubic feet per day. On the other hand, oil production more than doubled. It’s climbing to roughly 9 million barrels per day. This dramatic increase not only underscored the potential of American energy resources. It also contributed to a shift in the global energy landscape, positioning the United States as a leading producer of both oil and natural gas.

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Source: Forbes

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Oil futures rose on Friday, with U.S. crude up 6% for the week, as traders watched escalating Ukraine-Russia tensions.

US oil prices score a more than 6% weekly gain on supply risks tied to the Russia-Ukraine war

Oil futures settled higher on Friday, with the U.S. crude benchmark up by more than 6% for the week as traders continued to monitor escalating tensions between Ukraine and Russia, which is among the world’s biggest oil producers. Let’s talk more about oil prices score.

Still, downbeat economic data from Europe fed concerns over a potential slowdown in energy demand, as European business activity sank to a 10-month low, helping to limit gains for oil and keep WTI and Brent prices down year to date.

Oil prices score

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Source: Market Watch

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