Oil & Gas Prices - July 24

[dan_s]

Opening Prices:
> WTI is up 34c to $41.41/Bbl, and Brent is up 30c to $43.61/Bbl.
> Natural gas is down 1.9c to $1.766/MMBtu.

U.S. oil & gas production expected to decline after July per EIA: https://www.eia.gov/petroleum/drilling/#tabs-summary-2 < My take is that the impact of shut-ins being brought back on-line in May and June just briefly flattened U.S. production. At the current active rig count there is no way that U.S. production can keep from declining in Q3 and early Q4. Some companies will complete their DUC wells in Q4 to get those wells into their year-end reserve reports. Then we should see a big production drop in Q1 2021.

[dan_s]

This is why the "Right Price" for oil is much higher than where it is today:
"Saudi Arabia explores asset sales. Saudi Arabia is accelerating plans to sell off state assets and is considering an income tax in order to shore up its budget."

[dan_s]

Closing Prices:
> WTI prompt month (SEP 20) was up $0.22 on the day, to settle at $41.29/Bbl.
> NG prompt month (AUG 20) was up $0.023 on the day, to settle at $1.808/MMBtu. The September futures contract closed at $1.858.