Crude benchmarks surged in March when a drawdown in U.S. stockpiles, coupled with increased demand, pushed WTI ($62.33/bbl) and Brent ($65.41/bbl) up 5.6% and 5%, respectively. Oil futures also climbed 5%, pushing prices above the $5 trading range. Inventories fell 5.89 MMbbl, the largest decline in two months, bringing U.S. supplies to their lowest levels since February. WTI has gained 35% in the past four months after OPEC+ cut production, and Covid-19 vaccinations boosted gasoline consumption. The higher commodity prices are buoying drillers’ confidence. In March, U.S. drilling activity averaged 408 rigs, a 2.8% gain compared to the 397 reported in February. International activity averaged 872 rigs in February, 58 more (+7%) than in January.
- 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)
