USA oil industry set to break record, upend global trade

Peter Castro
January 18, 2018

Still, Goldman Sachs said in a note that "This rally has been driven first by robust fundamentals, with strong demand growth and high OPEC compliance accelerating".

The price of crude oil is up more than 4 percent so far in the 11 global trading days of the year.

Brent on Monday hit 70.37 dollars a barrel, its highest since December 2014, which was at the beginning of a three-year oil price slump.

Surging shale production is poised to push USA oil output to more than 10 million barrels per day - toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago.

March Brent crude, the global benchmark, dropped $1.11, or 1.6%, to end at $69.15 a barrel on ICE Futures Europe, suffering the biggest single session dollar and percentage decline year to date.

West Texas Intermediate, the US benchmark for the price of oil, was up 0.02 percent to $64.31 per barrel. Price had moved lower in electronic trading Monday (, which was a USA holiday.

Light trading on the US federal holiday left crude oil prices around neutral, but still marching closer to $70 per barrel, potentially on geopolitical risk.

For some of the economies in the Middle East, a report from Moody's Investors Service said the decision by the Organization of Petroleum Exporting Countries to balance the market isn't doing much for members of the Gulf Cooperation Council, whose six members include Saudi Arabia.

India make three changes to the line-up for Centurion Test
As you all may know that the 3 test of the series is scheduled to be held in Johannesburg from January 24. On the third day, he didn't go for the catch which was pretty much in his reach.

Money managers have raised the bullish positions in WTI and Brent crude futures and options to a record, according to data from the U.S. Commodity Futures Trading Commission and the Intercontinental Exchange.

Markets in the United States are closed as the nation commemorates the legacy of civil rights leader Martin Luther King Jr.

This restraint has coincided with healthy oil demand.

“There is lots of speculative length in WTI at the moment. the force is from the USA market right now so we need the direction they give coming back from holiday.”.

Other U.S. banks, including Bank of America Merrill Lynch and Morgan Stanley, have upped their price forecasts.

"We see increasing upside risks to our $62 per barrel Brent and $57.5 per barrel WTI forecast for the coming months".

Oil prices were little changed on Wednesday ahead of the release of USA weekly petroleum inventory and production data.

USA crude output is expected to soon breakthrough 10 million bpd, challenging top producers Russian Federation and Saudi Arabia.

Other reports by PlayStation Move reviews

Discuss This Article