Crude Inventories Decline Even as Overall Demand Sputters, EIA Says
U.S. oil inventories shrunk for a second consecutive week despite a demand drop amid a gradual recovery in economic activity and mixed coronavirus vaccine rollouts.
In its Weekly Petroleum Status Report (WPSR), the U.S. Energy Information Administration (EIA) said Wednesday crude inventories for the week ended April 2 excluding those in the Strategic Petroleum Reserve decreased by 3.5 million bbl from the previous week. At 498.3 million bbl, U.S. stocks held 2% above the five-year average.
U.S. crude production averaged 10.9 million b/d last week, down 200,000 b/d from the prior week and 2.2 million b/d below the 2020 peak reached in the March 13 week last year, just prior to the pandemic’s full impact in the Lower 48.
Natural Gas Rigs Down One in U.S. as Oil Count Surges by Double Digits
The U.S. natural gas rig count eased one unit lower to 91 for the holiday-shortened week ended Thursday (April 1), while a spring surge in the oil patch sent the overall domestic tally higher by double digits, according to data published by Baker Hughes Co. (BKR).
Thirteen oil-directed rigs were added in the United States, along with one miscellaneous unit, pushing the combined U.S. count to 430, versus 664 rigs active in the year-ago period, according to the BKR numbers, which are based partly on data provided by Enverus.
U.S. Adds 13 Rigs Amid Spring Surge in Oil Patch
With activity ramping up on land and offshore, the U.S. rig count surged 13 units higher to 430 during the holiday-shortened week ended Thursday (April 1), according to data published by Baker Hughes Co. (BKR).
As has often been the case recently, the increase in domestic drilling for the week was driven by the oil patch. Thirteen oil-directed rigs were added in the United States, along with one miscellaneous unit. Those gains offset a one-rig decrease in natural gas-directed rigs.
The combined 430 rigs running as of Thursday compares with 664 rigs active in the year-ago period, according to the BKR numbers, which are based partly on data provided by Enverus.
Betting on Mounting Oil Demand, OPEC and Allies Agree to Boost Production
The Organization of the Petroleum Exporting Countries and its allies, aka OPEC-plus, agreed on Thursday to ramp up crude production in anticipation of increased demand. The shift comes despite elevated uncertainty about the coronavirus pandemic and its still festering impacts on global travel and economic activity.
Saudi Arabia-led OPEC and an allied group of leading producers headed by Russia agreed to boost output by 350,000 b/d in May and June, and then increase to as much as 450,000 b/d in July. Saudi Arabia also would begin to unwind cuts it made earlier this year.
A week after extending production cuts, the Organization of the Petroleum Exporting Countries (OPEC) on Thursday raised its forecast for world oil demand