Oil price falls below $70 per barrel
Oil dipped below $70 per barrel yesterday. The US encouraged the Organization of Petroleum Exporting Countries, or OPEC, and its oil-producing partners to increase output, claiming that the present result is insufficient and could jeopardize global economic recovery.
Brent crude traded at $69.83, down 0.80 cents, while West Texas Intermediate (WTI) crude in the United States down $0.62, or 0.92 per cent, to $67.69 a barrel. Nigerian crude oil grade Bonny Light was trading at $69.79 a barrel.
Oasis Petroleum has published its first sustainability report, which details its commitment to environmental stewardship, social responsibility, and corporate governance. The Oasis Board of Directors has unanimously and fully endorsed the publication of this report, as well as the continued focus and transparency on Oasis’ commitment to sustainable operations and ESG efforts.
EIA report
Meanwhile, according to the weekly EIA report released late August 11, total US crude commercial stocks fell 450,000 barrels in the week ending August 6 to 438.78 million barrels. The EIA draw fell short of the 600,000-barrel draw projected by analysts polled by S&P Global Platts, as well as the 816,000 barrel draw recorded by the American Petroleum Institute a day earlier.
Downstream product data was mixed, with any optimism stemming from a 1.4 million barrel drop in US gasoline inventories to 227.47 million barrels countered by a 1.77 million barrel increase in US distillate inventories to 140.51 million barrels.
Opec +
Analysts said media claims have also impacted the market. The Biden administration has asked OPEC+ to expand oil production beyond the coalition’s present agreement to add back 400,000 b/d of oil monthly beginning in August.
Other countries, including India, have made similar demands to OPEC+, claiming that the producer group’s output curbs have resulted in higher oil prices, jeopardizing the global economic recovery.
US National Security Advisor Jake Sullivan confirmed this perspective on August 11, who added that crude oil futures are now trading at more excellent prices than pre-pandemic levels.
While OPEC+ just decided to raise output, these increases will not entirely compensate for previous production restrictions imposed by OPEC+ during the pandemic until well into 2022, According to Sullivan. That is insufficient at a critical juncture in the global recovery.
SandRidge Energy
SandRidge Energy released its financial and operating results for the three months ended June 30, 2021. Net income for 2Q21 was $16.3 million, or $0.45 per share. Net income after adjustments was $16.5 million, or $0.45 per share. SandRidge’s Board of Directors has approved the start of a share repurchase program as a means of returning capital to shareholders opportunistically. The Company may repurchase up to $25 million in outstanding common stock under the program beginning as early as August 16, 2021.
