US Daily Oil Summary: Shale Execs Expect Cost Increase

US shale executives are expecting record costs to increase according to the latest energy report by the Federal Reserve Bank of Dallas.

• Activity in the oil and gas sector rose in Q3 2023 with the business activity index increasing from 0 in Q2 to 10.9 in Q3 according to oil and gas executives responding to the Dallas Fed Energy Survey.
• (Sep-27) - U.S. crude stockpiles the Cushing storage hub are getting close to the operational low of 20m bbl, below which oil is difficult to remove, according to Reuters.
• USD: Any further faltering of the USD rally should allow overbought technical conditions to subside: EUR/USD, GBP/USD (and to a lesser extent, USD/JPY) had posted their most oversold technical backdrop since April last year earlier this week - meaning markets are likely undergoing a corrective recovery, but the medium-term USD uptrend remains intact regardless.
• Tighter monetary policy has finally made it to the top of U.S. corporate finance chiefs' list of worries, a sign that firms are at last feeling the effects of higher interest rates even if they still expect hiring and revenue growth to rebound next year, the CFO Survey director and Duke University economist John Graham told MNI.
• House Speaker Kevin McCarthy (R-CA) plans to bring a bill to the House floor on Friday which attaches a Continuing Resolution to a package of spending cuts and a GOP border security bill. Most are unconvinced he will have the votes to pass even a highly partisan bill, and, although there are several offramps available, a government shutdown now appears a near-certainty.