Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
Oil prices were steady on May 22 as caution relating to U.S. debt ceiling talks dragged on optimism over demand later in the year and offset support from lower supplies from Canada and OPEC+ producers.
Brent crude futures rose 19 cents, or 0.3%, to $75.77 a barrel by 1323 GMT, while U.S. West Texas Intermediate (WTI) crude for July delivery, the more actively traded contract, rose 17 cents, or 0.2%, to $71.72.
The June WTI contract, which expires later on May 22, rose 17 cents to $71.72 a barrel.
Talks to avert a U.S. debt default were set to resume in Washington on May 22, as the prospect of a default and resulting possible economic downturn and cooling of fuel demand continued to spook markets.
Still, the International Energy Agency (IEA) warned of a looming shortage in the second half when demand is expected to eclipse supply by almost 2 million barrels per day (bpd), the Paris-based agency said in its latest monthly report.
"I expect plenty of volatility in the coming days and a bounce upward in crude prices as and when a deal is reached to raise the debt ceiling," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Last week, both oil benchmarks gained about 2%, their first weekly rise in five, after wildfires shut in large amounts of crude supply in Alberta, Canada.
The impact of voluntary production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, is also being felt after going into effect this month.
Total exports of crude and oil products from the group plunged by 1.7 million barrels per day (bpd) by May 16, JP Morgan said, adding that Russian oil exports will likely fall by late May.
On May 20, the Group of Seven (G7) nations pledged at its annual leaders' meeting to enhance efforts to counter Russia's evasion of the price caps on its oil and fuel exports "while avoiding spillover effects and maintaining global energy supply", but did not provide details.
Those moves are not expected to change the supply situation for crude and oil products, the IEA Executive Director Fatih Birol told Reuters on the sidelines of the G7 summit.
Recommended Reading
Marketed: Confidential Seller Certain Mineral, Royalty Interests in Louisiana
2024-02-13 - A confidential seller retained RedOaks Energy Advisors for the sale of certain mineral and royalty interests in Louisiana.
Marketed: Private Seller Certain Royalty Properties in D-J Basin
2024-02-13 - A private seller retained RedOaks Energy Advisors for the sale of certain royalty properties in the D-J Basin.
H&E Equipment Services Acquires Precision Rentals
2024-01-09 - H&E Equipment Services’ acquisition of Precision Rentals adds approximately $70 million in original equipment to its fleet of construction rental equipment.
Analysts: Chesapeake-SWN Poised to Supply Growing Global LNG Demand
2024-01-11 - Chesapeake Energy and Southwestern Energy are combining in a $7.4 billion merger to serve more domestic customers and access growing global LNG demand.
From Tokyo Gas to Chesapeake: The Slow-burning Fuse that Lit Haynesville M&A
2024-03-01 - TG Natural Resources rides the LNG wave with Rockcliff deal amid shale consolidation boom.