Week of March 7, 2016
- Crude prices rebounded last week on reports that the US active rig count was at the lowest level since 2009, gasoline stocks had fallen and refinery operating rates were rising.
- The Wall Street Journal reported last week that U.S. shale producers have started to cut back production in the face of continued low prices and declining earnings.
- The Wall Street Journal also reported that some companies are simply waiting to pump completed wells until prices recover, which may keep an upside limit on future prices.
- IHS is forecasting a U.S. production drop from 9 mm to 8.3 mm bbl/day by summer 2016.
- IHS projects that Brent will average $39/bbl in 2016 and $49/bbl in 2017, or lower if demand underperforms or supply is stronger than forecasts.
- Natural gas fell to $1.64 MMBtu NYMEX on low inventory draws due to mild weather.