EOG Resources Surges on Higher Crude Prices Amid Middle East Tensions
US shale producer EOG Resources posted better-than-expected quarterly profits due to higher crude prices. The surge in prices was triggered by concerns over disruptions to Middle East oil supplies through the Strait of Hormuz, which followed the outbreak of war in Iran in late February.
The average price of Brent crude in April rose to $126.41 a barrel from $69.82 in January, while WTI increased to $109.64 from $65.17 during the same period.
EOG's average realized oil production price for the second quarter reached $98.15 per barrel, up significantly from $64.82 per barrel in the same quarter last year.
As a result of higher crude prices and new pipeline capacity, the Permian Basin is expected to see increased production. EOG's CEO Ezra Y. Yacob announced that the company established oil production in the United Arab Emirates during the second quarter.