Crude prices surged in July and hit a two-week high after an explosion in Lebanon suggested geopolitical instability in the region. Between April and June, U.S. oil output fell 1.0 MMbpd, while Saudi Arabia reduced output by 1.0 MMbpd in June to 7.5 MMbpd. The significant supply reduction caused WTI, Brent and Dubai Fateh benchmarks to jump 6% ( to $38/bbl), 7% ($40/bbl) and 8% ($40/bbl) respectively. U.S. drilling fell to another all-time low of 251 rigs during the week of July 24, but stayed at that figure on July 31. That’s 704 fewer than averaged in July 2019, and was the 20th consecutive weekly decline in activity dating back to March 6 (793 rigs). In Canada, drilling nearly ceased, with an average 18 units working in June. Total international activity averaged 799 rigs in June, 453 fewer than reported one year ago.
- Management issues- Dallas Fed: Activity sees modest growth; outlook improves, but cost increases continue (October 2023)
- Industry at a glance (June 2023)
- Industry at a glance (May 2023)
- Management issues- Dallas Fed: Oil and gas expansion stalls amid surging costs and worsening outlooks (May 2023)
- Executive viewpoint (April 2023)
- Global offshore market is on the upswing (April 2023)
