Industry at a glance
The rapidly deteriorating political situation in Iraq, with Sunni insurgents gaining control of much of that country’s oil-producing regions, sent oil futures sharply higher in early June, with Brent Blend gliding past $110/bbl. This, along with greater demand from China, put pressure on world oil supplies, which rose to 90.44 MMbpd, most of that outside OPEC. Production in the U.S. surpassed 8.3 MMbopd. Natural gas prices and production remained fairly steady. The U.S. rotary rig count stayed flat going into June, hovering around 1,850, while the international count climbed modestly to 1,516 rigs running.