California Fracking Boom Set to Lift US Production to New Record
Furthermore, higher supplies from major producing areas and weak trend at overseas markets weighed on crude palm oil prices at futures trade, analysts said. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.3% at $49.65 a barrel.
The oil for delivery in June traded lower by Rs 1.80, or 0.36 per cent, to Rs 500.90 per 10 kg in 271 lots.
US crude gave up early gains in Asia on Monday and fell following the 9th ballistic missile test by North Korea this year ahead of a day with China, the USA and US on public holidays.
Oil prices dropped five percent last week after OPEC and non-OPEC producers agreed to cut oil supplies at a level less than investors were expecting.
The U.S. have opted to stay out of OPEC, and the production has escalated 10 percent since mid-2016, touching the levels of top oil producing countries such as Saudi Arabia and Russian Federation.
United States drillers had now added rigs for 19 consecutive weeks, to 722, the highest amount since April 2015 and the longest run of additions on record, said energy services firm Baker Hughes. Total volume traded was about 12% below the 100-day average. Prices rose 90 cents to close at US$49.80 on Friday.
Brent for July settlement was at $52.12 a barrel on the London-based ICE Futures Europe exchange. Recent data has shown that USA production has soared 10 percent since mid-2016 to over 9.3 million bpd.
US oil and gas drilling also peaked in June 2015 at 1938 wells drilled, before falling by 77 percent to a 70-year low of 447 for the week of May 26, 2016.
Rigs targeting crude in the USA increased for a 19th straight week in the longest streak of gains since August 2011, according to Baker Hughes data. Even though the number of working rigs has more than doubled from last year’s low of 316, it was the smallest increase this year. Drillers in the D-J/Niobrara Basin in Colorado led the growth last week, adding four for a total of 27 oil rigs in the region.