October 5, 2016 – 24/7 Wall Street
Crude Oil Inventory Falls, Price Nears $50 a Barrel
By: Paul Ausick
The U.S. Energy Information Administration (EIA) released its weekly petroleum status report Wednesday morning. U.S. commercial crude inventories decreased by 3 million barrels last week, maintaining a total U.S. commercial crude inventory of 499.7 million barrels. The commercial crude inventory remains at historically high levels for this time of year according to the EIA.
Tuesday evening the American Petroleum Institute (API) reported that crude inventories fell by 7.6 million barrels in the week ending September 30. API also reported gasoline supplies increased by 2.9 million barrels and distillate inventories saw a drop of 1.3 million barrels. For the same period, analysts had estimated an increase of 2.56 million barrels in crude inventories, along with a rise of 702,000 barrels in gasoline supplies and a decrease of 700,000 barrels of distillates…
Read the full story here: http://247wallst.com/energy-economy/2016/10/05/crude-oil-inventory-falls-price-nears-50-a-barrel/
… Meanwhile, in the U.S. shale industry, analysts at RBN Energy posted a story Wednesday morning on capital spending (capex) and production guidance at 15 diversified energy companies. The short version: capex is estimated to fall by 53% compared with actual spending in 2014, while production is expected to decrease by just 5% in the same period.
RBN Energy expects four of these companies to increase production in 2016: Cimarex Energy Co. (NYSE: XEC), up 1%; Newfield Exploration Co. (NYSE: NFX), up 5%; WPX Energy Inc. (NYSE: WPX), up 12%; and Noble Energy Inc. (NYSE: NBL), up 17%.
As for 2017 capex and production, RBN Energy says, “At current forward curve prices, we anticipate larger investment budgets and stronger production growth for producers that are focusing on the major unconventional plays.”
