Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov
WTI Crude Oil

Oil Video 12.10.20.


The Number Of U.S. Rigs Drilling For Oil Continues To Increase

Oil managed to get below the $40 level as the strike in Norway ended while U.S. oil companies began to restart production in the U.S. Gulf of Mexico after Hurricane Delta.

On Sunday, 91% of U.S. Gulf of Mexico oil output remained shut, but the market expects that oil companies will be able to restore production quickly since they know how to deal with such issues.

The strike in Norway ended after oil companies and unions reached a wage agreement, removing the risk of a shutdown for Equinor‘s Johan Sverdrup oil field.

The above-mentioned factors limited supply in the near term and provided support to oil prices. Without these catalysts, oil quickly found itself under pressure as traders remained worried about the pace of oil demand recovery.

In addition, the recent Baker Hughes Rig Count report indicated that the number of U.S. rigs drilling for oil increased by 4 to 193. The number of oil rigs is trending up which is a not a positive development for the oil market.

Libya Restarts Sharara Oil Field Production

In my recent article on oil, I stated that Libyan oil production would be one of the key factors to watch in the upcoming weeks since Libya was actively trying to boost its production.

Over the weekend, Libya managed to lift blockade of the country’s biggest oil field, Sharara, which is capable of producing 300,000 barrels per day (bpd).

Sharara is not expected to reach this level anytime soon but Libya will work hard to restore production at its most important field. Currently, the country is producing about 300,000 bpd, and S&P Global Platts Analytics estimates that it could return to 500,000 bpd in October.

The pace of Libya’s oil production recovery will be important for the oil market which may face a slowdown in demand recovery as European countries start to introduce additional virus containment measures. If Libya surprises to the upside, oil may find itself under additional pressure.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.