Oil Supply Data Should Show More Non-OPEC Shut-ins

Oil Supply Data Should Show More Non-OPEC Shut-ins
Time will tell if oil price stability, or even an increase, will result from actions by OPEC+ and other producers.

Newly updated data on oil production from non-OPEC members, coupled with a strategic move by troubled upstream players, should figure prominently in the oil and gas market this week, according to a Rigzone panel of informed market-watchers. Find out more, as well as other market expectations, below.

Tom Seng, Assistant Professor of Energy Business at University of Tulsa’s Collins College of Business: The OPEC+ cuts took effect Friday and several major producers have also announced production curtailments. Only time will tell if the sum total of all these cuts will stabilize, or even raise, oil prices. Most oil in the U.S. cannot be economically produced for less than $35 per barrel.

Andrew Goldstein, President, Atlas Commodities LLC: I would look for resistance between $20 and $21 in the June WTI contract, as that was a support level before we saw a big decline as the May contract expired. Additionally, there are still millions of barrels of crude oil sitting on vessels throughout the world with nowhere to store it. That will keep the price levels down for months to come.

Tom McNulty, Houston-based Principal and Energy Practice leader with Valuescope, Inc.: I expect to see a continuation of a valuation “rope-a-dope”; oilfield services and exploration and production companies in bad shape are holding on for dear life to get the best possible valuations that they can for asset sales, desperately trying not to sell at the bottom.

Mark Le Dain, vice president of strategy with the oil and gas data firm Validere: As more recent supply data comes out the scale of shut-ins outside of OPEC will start to be recognized as significant. A lot of these are becoming apparent during the quarterly announcements but haven’t shown up in the industry production data yet.

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