SME Times is powered by   
Search News
Just in:   • Embedded finance to unlock $25 bn revenue opportunity for India’s platforms by 2030  • Hyderabad fastest-growing among 6 Indian cities amid real estate surge  • Celebration of Indian culture in Brazil: PM Modi  • Delhi chokes under ‘severe plus’ air quality amid dense fog  • High-street fashion players looking at India for manufacturing: Report 
Last updated: 11 Nov, 2024  

us-drilling US oil drilling costs may reach $67-$70 per barrel by 2026 under Trump

IANS | 11 Nov, 2024

The Donald Trump presidency in the US could have a significant impact on the oil market, with potential growth largely dictated by price, according to a report on Monday.

Additional US oil production means a well drilling cost requirement of $64 per barrel. Going forward, in a couple of years, these costs could scale up to the $67 and $70 range as per the forward prices, according to the report by Ventura Securities.

The new US administration's push for increased US oil production through aggressive drilling policies may lead to shifts in global supply dynamics.

Trade tensions, particularly tariffs, could introduce new uncertainties, affecting crude prices and US export competitiveness.

"The geopolitical landscape, including Middle East tensions and sanctions on countries like Iran, could further influence oil prices. These factors together will play a crucial role in shaping the global oil market's trajectory under Trump's leadership," the report mentioned.

There is a potential to see more US production on account of the approach and insistence on "more drilling" and trade policies.

"Trade uncertainty and frictions remain a headwind to crude prices, specifically when it comes to US energy prices. There are likely retaliatory effects against US exports due to US import trade tariffs," the report noted.

In 2018, there was a significant fall in Iranian oil exports due to the re-imposing of sanctions against Iran.

"If there is a resurgence of such sanctions, we could witness a potential loss of supply from the oil market, an upside price risk erasing surplus expectations," the report said.

At present, sanctions have not been strictly enforced, and Iran has been able to increase exports significantly. The outcome of this would be pressure on OPEC+ to increase output. The current market prices stand at CMP WTI Crude at $70, Brent at $74, and MCX November Futures at Rs 6,024. The Trump regime may also bring comfort to the oil industry by investing in pipeline infrastructure, thereby increasing crude oil output.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Will the new MSME credit assessment model simplify financing?
 Yes
 No
 Can't say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter