Domestic Oil and Gas News: Week of July 21st, 2025

Jul 21

Goldman Sachs Boosts Price Forecast: The firm raised its H2 2025 Brent crude forecast to $66/bbl (+$5) and WTI to $63/bbl (+$6), citing tighter supply, dwindling OECD inventories, and Russian output constraints. However, they still expect a 2026 surplus of 1.7 mbpd Reuters+7EnergyNow+7EnergyNow+7 Reuters+1Reuters+1.
EIA Revises 2025 Output Estimates: The U.S. Energy Information Administration marginally lowered its 2025 production projection to 13.37 mbpd (from 13.42 mbpd), while nudging Brent average up to $68.89/bbl and WTI to $65.22/bbl Reuters.

Production Forecast Slowdown: Despite near-record output in Q2, the EIA now projects a slight decline to <13.3 mbpd by Q4 2026. They also raised natural gas-storage and export forecasts, which helps ease price pressures Reuters+9U.S. Energy Information Administration+9Reuters+9.

Drilling Rebounds: For the first time in 12 weeks, U.S. drillers added rigs, with +7 rigs (total 544) ending July 18. Oil rigs dipped to 422 (lowest since Sept 2021), but gas rigs climbed to 117—the highest since March 2024—driven by Haynesville and gas price support Reuters.

AI‑Driven Gas Power Surge: A spike in gas-fired plant projects, fueled by AI data center load, is straining equipment and construction supply chains. Energy firms are forming closer supply partnerships to meet demandReuters.

Iraq & Demand Strength: Brent rose to $69.81 (+0.4%) and WTI to $67.81 (+0.42%) following drone attacks in Iraqi Kurdistan that halved regional output (from 280 kbpd to 140 kbpd) while global oil demand surged to 105.2 mbpd Reuters+1Wikipedia+1.
Strait of Hormuz Concerns: Iranian threats to close the strait continue to loom over the market—though no closure has yet occurred, owing to geopolitical and economic risks Wikipedia.

Ryan Haggerty

Domestic Oil and Gas News: Week of July 7th, 2025