Steadily increasing output from the U.S., Russia and Saudi Arabia (34.04 MMbopd), combined with concerns about China’s economy, upset oil markets. Crude benchmarks, which declined 18% in November, continued on a downward trajectory, as WTI plunged from $53.58/bbl on Dec. 13 to just $42.53 on Dec. 24, only to jump back to over $48 on Jan. 4. Brent fell from $61.45 on Dec. 13 to $50.47 on Dec. 24, and then rose to $57.35 on Jan. 4. To bolster prices, OPEC cut output 530,000 bopd, its sharpest reduction in two years. U.S. gas prices remained relatively high, with Henry Hub trading at $3.89/MMbtu in December. The U.S. rig count was unchanged, averaging 1,077 units in December. Permian activity slipped five rigs, while international activity decreased 1.7% in November.
- 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)