For the last few weeks we expected that the price of Brent crude would break above $56 and would continue to trade above $56. Last week the price of Brent crude did break above $56 early in the week, but the price fell back to $55.99 by the end of the week.
Some support for the oil price stemmed from oil traders continuing to increase their net long positions. Meanwhile, the Brent-WTI differential continues to trade above $2 with respect to the April contract. Last week, the Brent-WTI differential started at $2.03 then widened to $2.33 early in the week before narrowing to close the week at $2. The narrowing of the Brent-WTI differential was the result of the price of Brent crude pulling back later in the week, and with U.S. crude inventories only increasing by 564,000 barrels.
For the upcoming week we are forecasting that the price of Brent crude will trade between $56. and $57. We are also expecting that the Brent-WTI differential will trade between $2 and $2.50 with respect to the May contract.
Recommended Reading
SM Energy Targets Prolific Dean in New Northern Midland Play
2024-05-08 - KeyBanc Capital Markets reports SM Energy’s wells “measure up well to anything being drilled in the Midland Basin by anybody today.”
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-08 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.
Chevron, Total’s Anchor Up and (Almost) Running
2024-05-07 - During the Offshore Technology Conference 2024, project managers for Chevron’s Anchor Deepwater Project discussed the progress the project has made on its journey to reach first oil by mid-2024.