Oil Price News: Drop In US Rigs Points To Decreased Supply
Oil Price News
Oil prices continued to rise on Monday, extending gains from last week. I Know First was able to predict this price increase in a forecast from last week. US oil rigging drill fell for the 19th straight week to the lowest level since 2010, pointing to lower supply later in the year. US oil industry executives will meet this week in Houston to plan their next step.
US oil riggers have become victims of their own success, as they got so good at squeezing oil from the ground that they created a global supply glut. This was part of the changing landscape that sent the price of crude oil tumbling, along with decreased demand from China and Saudi Arabia abandoning its traditional role as the world’s swing producer of oil. Now, all eyes are on US producers to see how they react, as many of them hope to change the US policy on exporting oil.
Since the 1970s, the US has limited access to foreign markets, banning the sale of oil pumped in the US except for a few limited circumstances. Because it can’t be exported, oil pumped in the US often sells for much cheaper than crude oil pumped in other parts of the world, usually around $5 to $15 cheaper per barrel. Oil executives have been making the rounds in Washington DC to get Congress to lift the ban, letting the US compete in the global market and decreasing their allies’ dependance on Russian and Iran for their energy needs.
