Oil in New York is heading for a weekly decline as surging coronavirus cases raised fresh concerns about demand, while the market is continuing to grapple with ample supply.
Offshore oil production is showing signs of a turnaround as crude prices rise and operations become more efficient, giving energy compaies in Houston and elsewhere the confidence to resume deepwater projects stalled during the oil bust.
The US is to open up 75.9 million acres offshore Texas, Louisiana, Mississippi, Alabama, and Florida for oil and gas exploration and development.
US oil inventories are at record levels, but there are a few glimmers of hope that the glut could be starting to subside.
Oil at $35 a barrel is neither too high nor too low but just right to make shares of US explorers worth buying, according to Goldman Sachs.
Explorers once again idled drilling rigs in US. oilfields as crude inventories continue climbing, boosted by a surge in imports.
New data released yesterday by the US Energy Information Administration show that for the first nine months of 2015, most (50.8%) of the crude oil produced in the Lower 48 states were light oils with an API gravity above 40 degrees.
Some US oil producers are trying to sell parts of their lucrative saltwater disposal businesses in a sign that cheap crude is already forcing cash-starved companies to sell assets so oil can keep flowing.