By Alex Mills
November 15, 2018
While crude oil prices have declined 27 percent since Oct. 1, natural gas prices broke through the $4 barrier this week for the first time in four years.
On the crude oil side, worldwide demand has declined while supplies have increased.
Crude oil production in the U.S., Saudi Arabia and Russia reached some of their highest levels in history last month, offsetting supply losses from Iran and Venezuela.
Saudi Arabia announced that it would cut exports by 500,000 barrels per day (bpd) in December, and it is working with OPEC+, which is the new organization that includes some non-OPEC members such as Russia, to cut about 1 million bpd of production.
The Energy Information Administration (EIA) said this week OPEC production for 2018 and 2019 will be revised up by 60,000 bpd to 39.1 million bpd.
U.S. oil production also increased to 11.4 million bpd.
U.S. commercial crude oil inventories increased for the sixth consecutive week from Sept. 21 through Oct. 26, and pushed the U.S. inventories higher than their five-year (2013-17) average. U.S. crude oil inventories are forecast to increase from 421 million barrels in 2018 to 472 million barrels in 2019, putting more downward pressure on domestic oil prices, according to EIA…