crude posting

After NYMEX WTI climbed higher all last week, topping $90/Bbl, euro-zone worries yesterday caused a 4 percent fall in crude to close at $88.14/Bbl. That is a still a long way above  estimates of $50/Bbl break-even prices for crude produced from Eagle Ford shale. Oil production in the Eagle Ford is now close to 600 MB/d and estimated by Bentek to rise to over 700 MB/d by the end of this year. This South Texas play is attracting producers like bees to a honey pot. Midstream infrastructure projects are springing up left right and center. In the first of a series we look at how Eagle Ford crude prices compare to the Bakken.

NYMEX WTI crude traded at over $100/Bbl for most of March through May this year. With today’s close at $79.21/Bbl, the price is down 28 percent from this year’s highs. Canadian heavy crude bitumen postings fell to $64/Bbl last week. Could a press release from a small Canadian oil exploration company last week be the first indication of investor concern? In today’s blog, we ask whether Canadian Oil Sands production costs are too high to justify new investment.