Oil prices could increase in the next few months, says Department of Mineral Resources head
BISMARCK, N.D. (KFYR) - The Department of Mineral Resources hosted their quarterly Director’s Cut Friday.
Director Lynn Helms presented data from November. From October to November, oil production jumped by 4.4%, which Helms says is good news for North Dakota.
Natural gas production was also up 2.4%, which is unusual. On the flip side, gas nominations have fallen. As a result, Helms predicts there will be a drop in the price of oil in the January numbers, which will be reported in March.
“Things looked very strong through the first three and a half weeks of December. Every bit as good as November, maybe even a little bit better. But, that last week of December, things started to drop, and then all of January we’ve seen significantly lower gas productions estimates. So, January could be a pretty tough month,” said Helms.
OPEC+ met last month and decided to stick with their plan of increasing oil production to 400,000 barrels.
Helms says inventories of oil that were built up during the pandemic are gone, both in the U-S and worldwide. That means oil producers will gradually increase production over the next year, which Helms says will probably mean higher oil prices.
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