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RIYADH: Oil fell by more than $2 per barrel on Friday, swept up in a wider rout in global equities on fears of a looming recession, after central banks across Europe and North America signaled, they will continue to battle inflation aggressively.
Brent crude futures settled at $79.04 per barrel, down $2.17 or 2.4 percent, while West Texas Intermediate futures fell by $1.82, or 2.4 percent, to settle at $74.29 per barrel.
North Dakota’s oil production cut as winter storm lashes Midwest
A winter blizzard sweeping across the northern US has cut North Dakota’s oil output by between 200,000 and 250,000 barrels per day, state Pipeline Authority Director Justin Kringstad estimated Friday.
A winter storm pounded the heart of the US, bringing heavy snow and freezing rain to Northern Plains and Midwestern states, with thunderstorms and destructive tornadoes hitting the South. Oil and gas wells suffer freeze-ins when temperatures drop.
Kringstad said he anticipates a relatively quick return of oil production over the next several days as visibility improves and roads are cleared, adding that there had been some limited, localized power issues.
Major oil and gas processing plants and pipelines have remained operational to the best of his knowledge, he said, adding that most roads remain closed.
US drillers cut most oil rigs since September: Baker Hughes
US energy firms cut oil rigs by the most this week since September, reducing the total oil and gas count for a second week in a row as crude prices remained negative for the year.
The US oil and gas rig count, an early indicator of future output, fell by four to 776 in the week to Dec. 16, energy services firm Baker Hughes Co. said in its closely followed report on Friday.
Despite this week’s rig decline, Baker Hughes said the total count was still up 197, or 34 percent, over this time last year.
US oil rigs fell five to 620 this week, their lowest in six weeks, while gas rigs rose one to 154.
Oil output from the Permian shale basin, the biggest US oilfield, is set to touch a record 5.6 million bpd in January, but the increase is a third of September’s pace, according to the government forecast.
Overall US shale output is forecast to reach a record 9.3 million bpd in January, according to the data, up only 94,500 bpd over the prior month.
Switzerland formally adopts EU oil price cap for Russia
The Swiss government adopted further sanctions against Russia over the war in Ukraine on Friday, in line with the EU’s latest measures on Russian crude oil and petroleum products, the cabinet said.
The additional sanctions ban the transportation of Russian oil and petroleum sold above the price cap introduced earlier this month to trade and brokering services.
Switzerland’s government had said on Dec. 8 it would adopt the price cap for Russian crude oil of $60 per barrel.
The additional sanctions come into force on Friday evening.
(With input from Reuters)