Oil prices remained mostly steady around $45 per barrel for the week as the energy industry continues to struggle with oversupply.
Starting last week at $44.85 per barrel for WTI crude oil and $46.21 per barrel for Brent crude, oil finished the week slightly higher. On Friday, oil prices closed at $45.88 per barrel for WTI crude oil and $48.01 per barrel for Brent crude oil.
Leading factors affecting oil prices for the week included Wednesday’s EIA Petroleum Status report, Friday’s Baker Hughes Rig Count report and continued discussions by OPEC officials on production level agreements. Wednesday’s EIA Petroleum Status report showed a significant decrease in oil inventory with the inventory level down 14.5 million barrels. The hurricane in Mexico was a leading factor slowing production with shipments disrupted in the Gulf of Mexico. On Friday, the Baker Hughes Rig Count increased by eight as the U.S. added 11 oil rigs and Canada decreased its oil rig count by three.
Discussions between OPEC members also continue. On Friday, Saudi Arabia and Algeria energy ministers met with OPEC officials ahead of the scheduled meeting later this month at the International Energy Forum in Algiers, Algeria, on Sept. 26-28.
While steps are being taken to improve energy market conditions, factors continue to keep oil prices low. A report this week from Apache (APA, Financial) noted a new oil discovery in Texas which could produce 3 billion barrels of oil. Additionally, a report from industry expert Dennis Gartman this week also set a cap on oil at $55 for the next few years.
Energy companies continued to struggle with oil price uncertainty. However, the Standard & Poor's 500 energy sector managed to gain during the Sept. 9 week with energy industry stocks up 1.04%. Stocks leading gains and losses for the week included the following:
Gains
- Consol Energy (CNX, Financial) 3.11%.
- Denbury Resources (DNR, Financial) 3.01%.
- Chesapeake Energy (CHK, Financial) 1.44%.
Losses
In a CNBC report Friday, Devon Energy’s chief executive officer gave his insight on the industry and some of his company’s plans for managing the oil price lows.
Disclosure: I do not own any stocks included in this article.
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