New data show that oil companies begin to increase drilling volumes after their stopped production from wells for months. Their decisions in the coming months, along with the Covid-19 pathway, could determine the long-term trajectory of oil reserves.
Now the price is stable at $ 40, analysts do not expect growth to $ 50. In total, the US federal government approved 1,238 permits – 126 more permits for oil production and 40 permits for the supply of gas more than in the previous month. West noted, those large companies such as Exxon, Chevron, and European oil companies like Royal Dutch Shell (RDS.A) account for a large share of increased drilling permits.
The oil market is now in a delicate balance. Drilling too much can lead to lower prices because supply will outstrip demand. OPEC said this week that it plans to gradually increase production. Russia also started this
process, as reported Barrons.
At prices of main brands of oil:
West Texas – $ 40.59 per barrel,
Brent Crude – $ 43.14 per barrel,
Urals – $ 42.60 per barrel.