Prices lost a bit of ground on the week as signs point to the resilience of US oil producers who continue to take low oil prices on the chin. While down $0.13 week over week, WTI was trading up 0.84% on the day at $49.44 at 12:16pm. Brent crude trading up 0.73% on the day at $52.39.
The rise in the number of active rigs in the US has slowed in recent weeks, but US crude oil production is not, with average production averaging 9.43 million barrels per day for the week ending July 28, according to the Energy Information Administration (EIA), who expects US production to reach an average of 9.9 million barrels per day in 2018.
While flat this week, the Permian basin has proven most resilient in the low oil price environment boasting lower production costs and higher productivity, as well as a fair amount of hedging by Permian players at prices above $50.
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