I guess I didn't need to read the news to close my oil position :)
Activity stalls in top U.S. oilfields, outlook sours -Fed survey t.co
March 29 (Reuters) - U.S. oil and gas activity stalled in the first quarter as production gains slowed and drillers' outlooks turned negative, according to a survey released on Wednesday by the Federal Reserve Bank of Dallas.
The bank's activity index, which measures conditions among oil and gas firms across prime oil production portions of Texas, New Mexico and Louisiana, tumbled to 2.1 from 30.3 in the fourth quarter of 2022.
Companies reported rising costs for a ninth straight quarter and said this year's weaker prices for oil and gas are hurting cash flow and profits. Overall, a company outlook index turned negative, falling 27 points to -14.1.
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"An estimated 30–40 percent cost increase in field operations, increased interest charges on borrowed money, a drastic collapse in natural gas prices combined with lower crude oil prices produced a noticeable lower cash flow," said one survey respondent.
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WTI will trade around $80 a barrel by the end of the year, survey participants forecast. Natural gas prices, which are down roughly 50% from the start of the year and were trading below $2 per million British thermal units on Wednesday, are anticipated to end the year at $3.43 per MMBtu, participants said.
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