Oil prices are falling fast. Here's why

Oil prices are falling fast. Here's why

USA crude futures have fallen by as much as 10% to about $66.50 a barrel, which is down from last week's $73.

Baker Hughes' weekly rig count, released on Friday, showed US energy companies added 15 new oil rigs to production last week, taking total drilling activity to its highest since March 2015.

In April, pact participants cut production by 52 percent more than required, with falling output from crisis-hit Venezuela helping OPEC deliver a bigger reduction than intended.

Crude oil production in the Latin American state has dropped to around 1.4 million barrels a day in recent months - a spectacular collapse of almost 40 per cent since 2015.

The oil price fell 2 per cent on Monday from $US76.17 to $US74.49, wiping out much of the gains over the past month. While the crude oil prices were low, the government repeatedly levied cess on fuel to fund its infrastructure and other development programs while keeping the annual budget deficit in check.

Still, there are some concerns surrounding political turmoil in Italy, and the potential for further instability there rattled the stock market and raised concerns over a possibly decline in European oil demand, said Flynn.

These are concerns about the tightness of global supply, especially in light of Venezuela's woes and the possible curtailment of Iranian exports, and the rising importance of the United States as an exporter, particularly to the major consuming region of Asia.

China says it's ready to fight back after United States revives tariffs
China, meanwhile, has filed its own WTO dispute against the US , over Trump's earlier tariff proposals. China on Wednesday hit back at the White House saying it is "reckless" to renew tariff threats.

The Department of Energy (DOE) bared on Tuesday the Philippines' "two-pronged strategy" to source petroleum products from Russian Federation and other non-OPEC countries "to establish a strategic petroleum reserve (SPR) to cushion the impact of the rising price of oil in the global market".

Baker Hughes (BHGE) on Friday reported that the number of active USA rigs drilling for oil (http://www.marketwatch.com/story/us-oil-rig-count-makes-biggest-weekly-climb-since-february-2018-05-25) rose 15 to 859 in the most recent week.

"The regulation will send demand for middle distillates such as diesel and marine gasoil soaring, and refiners will have to shift some of the products they will be processing from crude oil", said Oilprice.com quoting analysts.

Crude oil futures were hammered Tuesday in catch-up trade after the Memorial Day break.

Today, current price levels averaging around $60 to $70 per barrel allow shale oil producers to reinvest in drilling wells and add capacity with free cash flow rather than debt, according to Slaughter.

The number of rigs operating in USA oil fields rose by 15 to a total of 859 rigs last week, notching the highest level since March 2015, oilfield service firm Baker Hughes said in its weekly report on Friday. The U.S.is due to reimpose economic sanctions on Iran after recently deciding to withdraw from its nuclear pact with Tehran.

Related News:



Most liked

Alberto churns inland, spreading rain widely
Alberto was more of a rainstorm than a wind threat, but the National Weather Service said at least one tornado had been confirmed. Alabama Power Co. said about 20,000 homes and businesses were without electricity Tuesday, most in the Birmingham area.

Mega Man 11 Activates in October; New Amiibo Revealed for Nintendo Switch
Controls for an on-screen weapon wheel have been added for easy accessibility to all of Mega man's weapons during combat. Kellen Haney of Capcom took to the Blog to speak about Mega Man's newest enhancement: the Double Gear system.

Nick Jonas and Priyanka Chopra dating?
Looks like it! Bollywood-Hollywood actress Priyanka Chopra and singer Nick Jonas are leaving all kinds of hints. Both Priyanka and Nick are seen sitting next to each other and are accompanied by several other friends.

Handicapped Daniel Ricciardo Holds on to Monaco Grand Prix Win
Hamilton said Red Bull looked the best bet for Ricciardo but "it's important in a team that you are valued at what you are worth". The popular Australian swan-dived into the swimming pool located on the roof of Red Bull's motorhome in Monaco's glitzy harbour.

NHL Announces 2018 Stanley Cup Finals Will Open With Lil Jon Performance
But after conferring with linesmen Matt MacPherson and Jonny Murray, they called Wilson for a two-minute interference penalty. Game 1 marked the first contest in the history of the 104-year history of the Stanley Cup Final to feature four lead changes.

Top North Korean general on way to U.S. ahead of summit
The second meeting between Kim and Moon in as many months reflects urgency among both men to maintain momentum for diplomacy. South Korean news agency Yonhap said Gen Kim Yong-chol was due to arrive in the United States on Wednesday, via Beijing .

Former Houston Rockets' star Mario Elie kicks off Game 7
Neither heart nor Harden nor game contributions from Clint Capela (20 points and nine rebounds), Eric Gordon (23 points) and P.J. The Rockets played themselves out of the playoffs and they did it by lazily launching 3-pointers instead of attacking the paint.

Four reasons why the team will win Game 7
But the Rockets' odds will no longer be neck-and-neck to close out the series at home in game 7 with Paul's health in question. The Warriors and Cleveland Cavaliers are going to the NBA Finals, for the fourth consecutive season.

Cyclone toll in Oman, Yemen rises to 11
As wind and rain began to pummel southern Oman during the day, they extended the closure of the city's airport until Saturday. Bangladesh national can call up +968-99413132 number for help or write to Bangladesh Embassy Muscat , Oman's Facebook ID.

Taiwan diplomacy harder than ever in US-China tug of war
China claims the island as its sacred territory and has vowed not to allow any attempts at what it views as Taiwan separatism. Tsai says she wants to maintain the status quo but will not be bullied by China and will defend Taiwan and its democracy.

American literary giant Philip Roth dies aged 85
On a panel at Yeshiva University in 1962, he was attacked, and he promised himself he'd never write about Jews again. He also was a three-time recipient of the PEN/Faulkner Award. "I decided that I was done with fiction", he said.

Nipah Scare: Odisha health dept issues alert to hospitals; MoHFW issues guidelines
The report said that this was the fourth death in the family with Moosa's two sons and sister-in-law dying from the disease. A nurse who treated three of the Kerala victims succumbed to the infection on Monday, Health Minister K.K.

Subtropical Storm Alberto forms; watches issued for U.S., Mexico, Cuba
Forecasters expect Alberto to intensify to a tropical storm Friday evening, but do not anticipate it to become a hurricane. The overall track of Alberto will be important to the amount of rain that can be expected across the Carolinas.

Hawaii volcano eruption: Striking pictures from Kilauea eruption 2018
A photo shared by the United States Geological Survey shows striking blue flames peeking through the cracks of the street. Laze plumes travel with the wind and can shift directions without warning, the county civil defence agency said.

Boston Celtics Pride: The growing legend of Jayson Tatum
James turned the ball over six times and couldn't finish easily at the rim like he has at other times this postseason. In Game 4 of the Cleveland series, Tatum moved ahead of Jerry West (275 points) on the rookie postseason-points list.