| Crude Oil Prices down: Will EIA Crude Inventory Follow API Data? | |
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API Data and Easing Middle East Tension Are Impacting Crude Oil (Part 2 of 3) (Continued from Part 1) EIA inventory report will be released today
The EIA (U.S. Energy Information Administration) will release the weekly US commercial crude oil inventory report today at 10:30 AM EST. The market estimates an increase of 2.5 MMbbls (million barrels). Yesterday, the API (American Petroleum Institute) reported that US stockpiles increased by 5.5 MMbbls for the week ending April 17, 2015. Last week, the EIA report showed that crude oil inventories increased by 1.02 MMbbls week-over-week to 482.4 MMbbls.
The API’s data shows an increase in inventory against the market estimates. This shows that demand is slowing down or supply is increasing again. If the EIA’s inventory data follows the footsteps of the API data, WTI crude oil will be under deep pressure. The current inventory levels are 22% more than the levels last year. The weekly US crude oil production is at 9.384 MMbpd (million barrels per day) for the week ending April 10. These figures are above last year’s level by 13%. However, production estimates are expected to slow down in the future.
Rig count decline may impact US oil production in 2Q15
Baker Hughes (BHI) is an oil field services company. It publishes weekly oil and gas rig count data. Baker Hughes expects the oil rig count to decline by 30% in North America and 15% in Europe in 2015. The current decline in the rig count and estimates of a continuing decline will slow down the US production in 2H15, according to Baker Hughes.
The oil glut market led to a decline in oil prices. Oil prices are trading at a discount of 40% from last year—impacting oil companies. Baker Hughes is getting into a merger deal with Halliburton (HAL) for $35 billion. Baker Hughes and Schlumberger (SLB) have been laying off employees due to lower revenue. Lower oil prices are impacting their operations.
Slowing production might result in higher crude oil prices. This favors ETFs like the Energy Select Sector SPDR ETF (XLE) and the SPDR Oil and Gas ETF (XOP).
Continue to Part 3 Browse this series on Market Realist:
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Halliburton is a and oil producing company based in United states of america. Halliburton is listed in United States of America. Its market capitalisation is US$ 33.4 billions as of today (€ 31.2 billions). Its stock quote reached its lowest recent point on January 25, 2002 at US$ 10.06, and its highest recent level on April 26, 2024 at US$ 38.54. Halliburton has 867 249 984 shares outstanding. |