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May WTI Crude Oil Declines after a 6-day Rally: It's near Expiry (Part 1 of 2) Crude oil drops
Below is our crude oil price and fundamental analysis. For an in-depth fundamental look at crude oil and related companies, sectors, and drivers, please refer to our Energy and Power page.
May WTI (West Texas Intermediate) crude oil futures fell by 1.71% and settled at $55.74 per barrel on Friday, April 17, 2015. Prices declined due to surging production from OPEC (Organization of the Petroleum Exporting Countries). Oil ETFs like the ProShares Ultra DJ-UBS Crude Oil (UCO) and the United States Oil Fund LP (USO) also fell marginally by 0.76% and 0.50%, respectively, at the close of trade on Friday.
OPEC continued its massive production in March 2015. OPEC’s monthly report was released on April 16. It showed that OPEC produced 30.79 MMbpd (million barrels per day) in March 2015. Saudi Arabia was the leading producer. It was followed by Iraq. OPEC production increased by 810,000 bpd (barrels per day) month-over-month. The Saudi Arabian ministry said that Saudi Arabia produced 10.3 MMbpd in March 2015—compared to 10.2 MMbpd in February 2015. The increasing production from OPEC is putting pressure on oil prices—despite the slowing production from the US.
Oil prices fell for the fifth time in the last ten trading sessions. The average up days’ prices increased 2.66% more than the average down days’ prices during the same period. May WTI crude oil futures and May natural gas futures were the worst performers in yesterday’s trade. WTI May crude oil futures’ prices gained 6% YTD (year-to-date)—led by slowing US production and declining inventory.
Oil and gas ETFs like the Energy Select Sector SPDR ETF (XLE) and the SPDR Oil and Gas ETF (XOP) also declined in yesterday’s trade. Oil and gas producers like Energy XXI (EXXI), Bonanza Creek Energy (BCEI), and Halcon Resources (HK) fell more than 5% in the last trading sessions. These companies have a crude oil production mix that’s more than 65% of their total production. They account for 4.38% of XOP. Lower oil prices impact oil companies’ profitability.
Continue to Part 2 Browse this series on Market Realist:
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Energy XXI
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EXPLORATEUR |
CODE : EXXI |
ISIN : BMG100821401 |
CUSIP : G10009101 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Energy X X I est une société d’exploration minière et de pétrole basée aux Etats-Unis D'Amerique. Son principal projet en exploration est VERDA RAGEN en USA. Energy X X I est cotée au Royaume-Uni et aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 370,4 millions US$ (302,0 millions €). La valeur de son action a atteint son plus haut niveau récent le 18 septembre 2009 à 9,63 US$, et son plus bas niveau récent le 15 avril 2016 à 0,12 US$. Energy X X I possède 95 459 002 actions en circulation. |