U.S. Officials Urge Occidental Petroleum and Peers to Raise Output as Prices Hit $98
Interior Secretary Doug Burgum and Energy Secretary Chris Wright urged producers, including Occidental Petroleum, to increase output after Strait of Hormuz disruptions removed about 16 million barrels per day of supply. Global futures topped $98 per barrel and physical contracts fetched higher prices, prompting executives to plan additional drilling investments.
1. U.S. Officials Press Producers
Interior Secretary Doug Burgum and Energy Secretary Chris Wright convened a videoconference with a dozen oil executives, including representatives from Occidental Petroleum, ExxonMobil, Chevron and others, to urge an increase in U.S. crude production.
2. Strait of Hormuz Supply Shock
Disruptions in the Strait of Hormuz and damage to Gulf facilities removed an estimated 16 million barrels per day from global markets, creating a sudden supply gap and driving crude prices higher.
3. Price Spike Spurs Investment Talk
With futures topping $98 per barrel and physical contracts trading above benchmark levels, several executives signaled intent to accelerate drilling and capital spending to capture elevated margins.