Industry at a glance
The world’s three major crude benchmarks fluctuated after being subjected to domestic factors and geopolitical risks. In May, the price of WTI ($70.44) was suppressed by the inability of producers to get product to the coast for export. Brent averaged $6.80 more than WTI, the highest disparity in three years. Brent’s premium to Dubai ($68.43) shrunk to the lowest level since January, due to U.S.-Iran sanctions and uncertainties about OPEC’s production cuts. Surging shale fields pushed U.S. production to a new record high, while Russia boosted output by 70,000 bpd, to ascertain capabilities ahead of its likely easing of constraints. International activity remained resilient in April, with the exception of Canada, which dropped to 98 units, a decline of 55%, due to continued spring break-up. The U.S. rig count averaged 1,046 in May, up 3.5% from April.