Gasoline prices have been in steady decline this summer, now down to an average of $3.91/gallon last week. It had recently peaked at $5.02/gallon at recently at mid-June, and continues to slide on weaker demand and increased production.
Shell has repaired the issue that resulted in the company shutting down production at three of its offshore Gulf of Mexico platforms: Mars, Ursa, Olympus. The platforms are located approximately 100 miles south the Louisiana coast and combined can produce 410 Mb/d of crude oil. The company pointed to a flange leak at the Port Fourchon booster station as the cause of the Thursday's (8/11) shut down. According to Shell, repair crews were able to fix the leak and return Shell's system to normal operations within 24 hours of the leak's discovery.
Russia’s oil production faces bigger test as EU ban looms (Bloomberg)
Russia defied expectations of a collapse in oil production following its invasion of Ukraine. But Moscow will have to redouble its efforts to find new buyers if it’s to keep output from shrinking in the coming months.
Oil falls on weak economic data, offshore oil restart (Reuters)
Oil prices fell by more than $5 a barrel on Monday after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce fuel demand.
Brent crude futures fell $3.88, or 4%, to $94.27 a barrel by 12:34 p.m. EDT (1634 GMT) after settling 1.5% lower on Friday.
U.S. West Texas Intermediate crude was down $3.68, or 4%, at $88.41 after dropping 2.4% in the previous session.
Permian natural gas production averaged 15.75 Bcf/d last week, down 0.01 Bcf/ on the week. Month-to-date, Permian gas has averaged 15.75 Bcf/d, outpacing our August forecast by about 0.4 Bcf/d. Read more in the RBN NATGAS Permian Report.
China released data on Monday showing slower economic activity in July, including manufacturing, investment, consumer spending and almost every other metric. Crude markets reacted immediately, with WTI dropping more than $4/bbl, to the $87/bbl range, the lowest price since January 2022. China’s crude runs declined in July to the lowest level since Covid hit in 2020 due to unplanned shutdowns at large refiners and lower production from independents.
The SPR has awarded 178 MMbbl of crude oil between the Winter Exchange, Mandatory Sale, and the 1st, 2nd, 2nd 2A, and 2nd 2B Emergency Sales. 17 companies have been awarded crude from these releases with Valero receiving nearly 24% of this at 42 MMbbl, and MPC receiving 21% at 37 MMbbl.
U.S. Drilling Activity Sees Decline For Second Straight Week (OilPrice.com)
The number of total active drilling rigs in the United States fell by 1 this week, according to new data from Baker Hughes published on Friday. It is the second decline in as many weeks.
The total rig count fell to 763 this week—262 rigs higher than the rig count this time in 2021.
Oil rigs in the United States rose by 3 this week to 601. Gas rigs fell by 1, to 160. Miscellaneous rigs dropped 3.