Crude Oil Prices: Which Issue Could Change The Pattern?

Crude Oil Prices: Which Factor Might Change the Pattern?

Weekly US crude oil production

The EIA estimated that US crude oil production rose by 9,000 bpd (barrels per day) to 9,789,000 bpd on December eight-15, 2017. Manufacturing is at the best stage ever. US crude oil production rose by 1,003,000 bpd or eleven.4% 12 months-over-yr. Manufacturing elevated for the ninth straight week. WTI oil (DWT) (UCO) costs have fallen 1.5% for the reason that highs on November 24, 2017, attributable to report US production.

Oil costs influence the Vanguard Energy ETF (VDE). It rose 1.5% to 96.19 on December 20, 2017.

Occupied with VDE? Don’t miss the subsequent report.

Obtain e-mail alerts for brand new analysis on VDE

US crude oil production restoration

US crude oil production hit 8,428,000 bpd (barrels per day) on July 1, 2016—the lowest production in more than two years. Manufacturing rose by 1,361,000 bpd or 16.1% from the lows on July 1, 2016. Relatively larger oil costs in 2017 compared to 2016 and bettering drilling costs led to the rise in US production.

Estimates for 2018

US manufacturing could average ~10,020,000 bpd in 2018, based on the EIA. Will probably be the very best annual manufacturing common ever. Higher oil prices in 4Q17 will contribute to higher crude oil rigs and production. It also benefits oil producers (FXN) (IYE) like Hess (HES), Newfield Exploration (NFX), and Goodrich Petroleum (GDP).

Manufacturing cuts and US oil production

Major oil producers prolonged the manufacturing cuts till Petroleum Equipment December 2018. US oil manufacturing has risen by 843,000 bpd or 9.Four% from January 2017 to December 15, 2017. It has offset forty seven 47% of the production cuts.


liquid chlorine storage tankThe International Energy Company expects that US crude oil production will increase by 870,000 bpd in 2018. The rise in crude oil supplies from non-OPEC producers might partially offset the production cuts in 2018. The rise in non-OPEC supplies will be the biggest development changer for oil costs in 2H18. It will strain crude oil prices in 2018.