Editors: Tom Whipple, Steve Andrews
Quotes of the Week
“The shale boom that is providing the majority of all incremental supply relative to demand is much closer to its peak than was previously anticipated. Productivity from onshore wells appears to have topped out in 2017 and experienced declines in 2018 followed by further declines in 2019.”- Jeremy Thigpen, President, CEO and Executive Director of Transocean
“We’ve always been clear that we will follow the science. We cannot be certain that shale gas can be extracted safely, and therefore we must impose this moratorium [on fracking] until the science changes.”-Andrea Leadsom, UK Business Secretary
Graphic of the Week
1. Energy prices and production
On Wednesday, the price of oil came under pressure after the EIA reported a crude oil inventory build of 5.7 million barrels for the week to October 25. Analysts had expected a much smaller build of 729,000 barrels after a 1.7-million-barrel draw interrupted a string of five weekly inventory builds.
On Thursday, oil prices quickly wiped off early gains after China reported six consecutive months of lower factory activity. China’s Purchasing Managers’ Index dropped in October, compared to expectations of staying unchanged from September. This exacerbated fears that the Chinese economic growth will further weaken, especially without a U.S.-China trade deal.
Oil prices rose nearly 4 percent on Friday on signs of progress in U.S.-China trade. Brent crude ended the session up $2.07, or 3.5%, at $61.69 a barrel, but was still down about 0.4 percent for the week. West Texas Intermediate crude settled $2.02, or 3.7% higher at $56.20 a barrel, but fell about 0.8% in the week. The first, and easiest to agree on, phase of the US-China trade talks is progressing, and Washington hopes to sign an initial deal this month.
OPEC’s oil production jumped by 690,000 b/d from September to 29.59 million b/d in October, as the Saudis saw their production…