Crude Oil Prices Affect U.S. Production
Crude oil prices are moving higher amid concerns that low prices have led to too many crude production cuts.

An oil well in North Dakota. Photo: ConocoPhillips

An oil well in North Dakota.Photo: ConocoPhillips
Crude oil prices are moving higher amid concerns that low prices have led to too many crude production cuts.
The lower prices this year will eventually lead to lower production in the U.S. A Friday report showed the number of rigs in service for drilling in the country fell for the third straight week last week.
According to the Wall Street Journal, government figures show U.S. oil production has fallen from 9.6 million barrels per day in April to 9.1 million last month and is expected to hit 8.6 million by mid-next year. This is raising concerns about oil, and consequently fuel prices, later this year and well into 2016.
Crude prices in New York as well as overseas were up more than 3% and nearly 2%, respectively, around mid-day on Monday. However, the New York price follows a Friday drop of more than 4.7%, indicating the crude market remains extremely volatile.
But there is another estimate that has some worried.
The OPEC oil cartel is forecasting U.S. crude production could drop next year by a whopping 27%. That, along with oil production cutbacks overseas, could push the price of oil back up $80 by 2020, taking diesel and gasoline prices along with it.
While trying to figure out when oil and fuel prices will return to higher levels is impossible, it may be safe to say that those who have been enjoying the big price declines the past year, may find such days are numbered.
The one wild card remains the U.S. Federal Reserve, after deciding not to hike interest rates last week, there is now speculation if they will move before the year is out. No matter if its in 2015 or next year, some analyst warn that such a move could slow down the econonmy and that could lead to less demand for fuel and oil. That could throw expectation of higher prices both straight out the window.
More Fuel Smarts

How Volvo Updated Its D13 for EPA 2027 [Watch]
Volvo’s updated D13 promises lower emissions without sacrificing performance or fuel economy. Take a closer look at what changed inside the engine in this HDT Spotlight video.
Read More →
Diesel Price Spike Shortens Payback for Natural Gas Trucks, Report Says
Energy Vision estimates fleets could recover the higher purchase price of an RNG-fueled Class 8 tractor in 1.3 to 2.8 years under current fuel-price scenarios.
Read More →
Calstart Becomes Catalyst Mobility, Reflecting Broader Focus
Calstart is now Catalyst Mobility, reflecting the nonprofit’s growing national role in clean transportation, including zero-emission trucks, infrastructure and incentive programs.
Read More →
Record Diesel Prices Squeeze Trucking Fleets
Average U.S. diesel prices have climbed to nearly $6 a gallon, surpassing the 2022 record as tight refinery capacity and Middle East disruptions keep fuel costs elevated.
Read More →
How Fuel Delivery Shapes Engine Performance
Fuel delivery depends on more than what happens at the injector. For fleet, maintenance and technical professionals, looking at the full path from pump to injector can provide useful context for understanding engine performance.
Read More →
East Coast Port Launches $45M Electric Truck Push
The Port Authority of New York and New Jersey announced millions in incentives for zero-emission drayage trucks, yard tractors, and new charging hubs near the port.
Read More →
California Bill Could Shed Light on Electric Truck Prices
Why do battery-electric Class 8 trucks remain so expensive? A California bill headed to Gov. Gavin Newsom would give fleets and state agencies more visibility into what manufacturers charge.
Read More →
Detroit Opens Orders for EPA 2027 Engines
Detroit isn’t starting from scratch to meet EPA 2027 diesel emissions standards. Its Gen 6 DD13 and DD15 engines keep much of today’s platform while updating the fuel and aftertreatment systems.
Read More →
Zero-Emission Truck Corridor Planned for West Coast
California, Oregon, Washington, British Columbia and Baja California are coordinating plans for truck charging and hydrogen fueling from Canada to Mexico.
Read More →A Closer Look at Kenworth’s Electric T880E Vocational Truck [Video]
Learn more about Kenworth's T880E battery-electric vocational truck at the Paccar Technical Center, including its range, applications, upfitting considerations, and PTO options, in this HDT Spotlight video.
Read More →

