Continental Resources expects lower production in Q1
Apr 13, 2021 5:15:pm
Summary
by: Daniel Graeber
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Continental Resources expects lower production in Q1
US shale company Continental Resources reported April 13 that first quarter gas production is expected to be some 4% less than the previous period and oil output could be nearly 14% lower.
The company, which has a strong footprint in the Bakken shale in North Dakota, said inclement weather in February resulted in a net 60,000 boe/d decline in production, with 60% of that in oil.
An arctic freeze that descended across much of North America idled large parts of the regional energy sector. Continental said it expected first quarter oil production to average 152,000 b/d and natural gas production to come in at 935mn ft
Colorado university sees busy Atlantic hurricane season
Forecasters at Colorado State University in an April 9 report are predicting this year’s Atlantic hurricane season will be busier than ever, posing a potential threat to oil and gas operators along the US Gulf Coast.
“We anticipate that the 2021 Atlantic basin hurricane season will have above-normal activity,” the report from the university’s tropical meteorology project predicts.
The probability that at least one storm stronger than a category 3 hurricane, the low-point for classification as a major hurricane, will make landfall in the continental United States is 69%, above the 52% average for the last century.
U.S. Crude Oil Output, U.S. E&P Deals: Your Daily Energy News
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Gold, Crude Oil Price Outlook: Market Digests Strong NFP and Higher Yields
GOLD, CRUDE OIL PRICE OUTLOOK:
Gold prices retreated 0.5% as an upbeat nonfarm payrolls report sent 10-year yield higher
Crude oil prices slid marginally after Saudi Arabia raised prices for oil shipments to Asia
The US Dollar traded flat amid a quiet trading session as several key markets are shut for a holiday, offering few clues for oil trading
Gold prices fell modestly during Monday’s APAC morning session, pausing a three-day gain as the 10-year Treasury yield climbed more than 3%. A much stronger-than-expected US nonfarm payrolls print boosted reflation optimism and led longer-dated rates higher, undermining the non-yielding precious metals. Meanwhile, the DXY US Dollar index was little moved amid a quiet trading session as several key APAC markets are closed for public holidays. Higher price volatility may be expected when traders return on Tuesday and digest the latest jobs data.
The OPEC+ alliance will raise its collective output caps by 350,000 b/d in May, another 350,000 b/d in June, and 441,000 b/d in July.
At the same time, Saudi Arabia, which has been cutting an extra 1 million b/d on top of its quota to help bolster the market, will unwind it by 250,000 b/d in May, 350,000 b/d in June and 400,000 b/d in July.
The surprise decision still saw front-month Brent futures rise almost 4% to above $65/b in the wake of the meeting after choppy trading earlier in the day as OPEC+ members debated their options. We believe bullish balances with sequential draws in the second and third quarters will firm up prices, with alignment between strong fundamentals and reflation trade lifting crude to fresh highs of $75-$76/b Brent in June-July, S&P Global Platts Analytics said in a note.