Oil prices could rise in coming months, says head of Department of Mineral Resources

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BISMARCK, ND (KFYR) — The Department of Mineral Resources held its quarterly Director’s Cut on Friday.

Director Lynn Helms presented the November data. From October to November, oil production jumped 4.4%, which Helms said is good news for North Dakota.

Natural gas production also increased by an unusual 2.4%. On the other hand, gas nominations have plummeted. Accordingly, Helms predicts that there will be a drop in the price of oil in the January figures, which will be released in March.

“Things looked very solid in the first three and a half weeks of December. Just as good as November, maybe even a little better. But, that last week of December things started to go down, and then all of January we saw significantly lower gas production estimates. So January could be a pretty tough month,” Helms said.

OPEC+ met last month and decided to stick to its plan to increase oil production to 400,000 barrels.

Helms says the oil stocks that were built up during the pandemic are gone, both in the United States and around the world. This means that oil producers will gradually ramp up production over the next year, which Helms says is likely to drive up oil prices.

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