• Oil prices rose on February 23 after U.S. data showed a surprise decline in inventories, suggesting that a global glut may be ending after moves by OPEC to cut production. Benchmark Brent crude oil was up $1.05 a barrel, or 1.9 percent, at $56.89, recovering from a drop of 82 cents. U.S. light crude rose $1, or 1.9 percent to $54.59 a barrel. It fell 74 cents in the previous session.
• Tudor, Pickering, Holt & Co. ran a U.S. frac sand demand model early last year that significantly underestimated demand for 2017 and 2018, forcing the bank to revise its forecast in December to predict record demand for 2018. Tudor says tightening supplies and logistical challenges could send frac sand prices to 2014 levels, when there were 1,500 rigs in U.S. oil patches.
• Source Energy Services Canada LP, Canada’s largest distributor of frac sand, is weighing an initial public offering, according to a report in the Calgary Herald. The Calgary-based company, which is backed by private equity firm TriWest Capital Partners, could seek a valuation of about $1 billion in a listing. Source Energy is hoping to capitalize on a turnaround in oilfield services as North America’s hydraulic fracturing industry begins to improve on higher crude prices.