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On May 1st, ExxonMobil and Chevron rejected the White Houses call to increase production, refusing to comply with the current US administrations demands. The US government is currently grappling with the worst energy crisis in decades. ExxonMobil CFO Neil Hansen stated that the companys strategy in the Permian Basin, a major US oil and gas producing region, "remains unchanged." Chevron CFO Emia Bonner stated, "This crisis has not prompted any changes to our plans." The war with Iran has led to a sharp decline in oil production in the Gulf region and impacted refining operations in the Middle East and elsewhere, with the resulting energy shock potentially exacerbating global inflation. While the US government has released strategic petroleum reserves and urged the industry to increase drilling activity, these two US energy giants are sticking to their pre-war strategies. Hansen stated, "We really dont need to accelerate our pace because our production is already high, were already operating at high speed. Thats not to say we havent considered the possibility of expanding production, but there are definitely limitations." Bonner said, "We could increase production in the Permian Basin, but thats not our strategy. Our strategy is to increase free cash flow, not to increase production." She added, "You cant expect us to drastically change our plans because of an eight-week supply disruption." These statements were made when the two companies released their first-quarter results on Friday.ExxonMobil (XOM.N): First quarter production was 4.59 million barrels of oil equivalent per day.Melius Research: Raises its price target for SanDisk (SNDK.O) from $1,350 to $1,500.SpaceXs IPO filings show that the company will spend $3 billion on research and development in its space sector by 2025, all of which will be allocated to the Starship project.SpaceXs IPO filings show that the company has spent more than $15 billion on the Starship project as the debut of the upgraded prototype approaches.

WTI: A sluggish U.S. dollar and a declining inventory of crude oil weigh on purchasers above $69.00

Alina Haynes

Mar 22, 2023 14:36

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WTI crude oil gains offers to reduce intraday losses, the first in three sessions, during Wednesday's sluggish early trading. However, the price of black gold fell during the initial hours following the release of negative inventory data, the US Dollar's corrective rebound, and price-negative industry news. However, the dollar's inability to hold its ground and cautious optimism in the market appear to aid the energy benchmark as it posts modest losses near $69.30 at the latest.

 

Tuesday, the private Oil inventory data provider American Petroleum Institute (API) reported that the Weekly Oil Stock increased by 3,262 million barrels for the week ending March 17, compared to the previous week's increase of 1,155 million barrels.

 

In addition to the higher inventory levels, the US Dollar's corrective recovery, supported by an initial revival in US Treasury bond yields, favored WTI crude oil sellers following a two-day uptrend.

 

In addition, a lack of encouraging news from China President Xi Jinping's meeting with his Russian counterpart Vladimir Putin, despite their criticism of Western assistance to Ukraine, appears to exert downward pressure on the Oil price.

 

In addition, optimistic news from Reuters regarding the US oil refining industry encourages WTI bears. "The US oil refining industry expects to maintain a competitive advantage in exporting fuel to Latin America, despite Brazil's increased imports of Russian diesel," reported Reuters, citing an official from a leading US refining lobby.

 

WTI traders are primarily challenged by the market's indecision preceding the Federal Open Market Committee (FOMC) monetary policy meeting. Wednesday will see the release of weekly Crude Oil inventory data from the US Energy Information Administration (EIA), which is anticipated to be -1.448M compared to the prior week's 1.55M.


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