Oil prices retreat, but set for fourth week of gains By

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The EIA also estimates that the difference between total world consumption and total world production averaged 400,000 barrels per day in 2017, marking the first year of global inventory draws since 2013.

The increased crude prices are already having an impact at gas stations across the U.S. According to travel analyst group AAA, the $2.49 per gallon average U.S. gas price on New Year's Day of 2018 was the most expensive price for that date since 2014.

Federal U.S. estimates show total crude oil production hit 9.78 million barrels per day in the week ending December 15, a record high that Craig said was out of reach because of the recent U.S. cold snap. In 2019, crude oil production is forecast to rise to an average of 10.8 million b/d.

"It was the typical market reaction as oil initially jumped due to the drop in oil inventories, then [it sank] in that gasoline stockpiles surged, which prompted selling".

Oil prices rose for a sixth day on Friday after Russia's oil minister said that global crude supplies were "not balanced yet", alleviating market concerns about a wind-down of the OPEC-led deal to reduce production.

If achieved, it would break previous records as higher petroleum prices trigger a drilling revival in shale fields, the Energy Information Administration's first short-term forecast for 2019 reveals.

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The bench said it will look into the petitions but will also consider the objections raised. The bench posted the matter for further hearing on January 15.

Analysts and traders have warned about the risk of a price correction since the start of 2018, but they say overall market conditions remain strong, mainly due to output cuts led by Organization of the Petroleum Exporting Countries and Russian Federation. "Another variable to watch will be US crude oil production". While surging economic growth helped demand to soar in 2017, the US dollar slid through most of the year as other global economies fared better. The ongoing push to cut production should keep oil prices afloat over the near-term especially as USA output falls back from fresh record-highs.

A broad, global market rally, including stocks, has also been fuelling investment into crude oil futures.

U.S. West Texas Intermediate (WTI) crude futures settled at US$63.57 a barrel, up 61 cents, or 1 per cent, their highest settlement since December of 2014.

Ole Hansen, head of commodity strategy at Saxo Bank, said this week that "bullish news tends to get more attention than potentially bearish signals".

On Tuesday, the EIA boosted output expectations, saying it now sees overall production at record highs, surpassing 11 million barrels per day (bpd) by 2019. Commercial crude oil inventories in the United States at the start of January 2017, for example, were 48 percent higher than they were at the start of January 2014.

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