Published: Sat, January 13, 2018
Business | By Max Garcia

Habit driving crude oil prices higher early Wednesday

Habit driving crude oil prices higher early Wednesday

"We estimate that WPI could rise by 0.5-0.7 per cent on account of a 10 per cent increase in crude price, while the impact on retail inflation would be less pronounced given the lower weight of oil related products and can be in the region of 0.3-0.35 per cent", it said.

Singapore:Oil prices on Friday slipped away from December-2014 highs reached the previous day.

On prices, the agency said Brent, the benchmark for North Sea crude oil spot prices, is forecast to average $60 per barrel this year and $61 per barrel in 2019, after experiencing a sharp run up last year.

USA crude oil production is expected to hit 10 million bpd next month, behind only Russian Federation and Saudi Arabia.

As of December, Venezuela's crude oil production was roughly 1.8 MMBPD, the lowest level since February 2003, when most of Venezuela's oil production was shut-in during an oil workers' strike, Kallanish Energy learns.

Non-OPEC production, led by the US and Canadian oil sands projects, “is forecast to continue growing through the end of 2019, ” Conti said, with growth of 2 million bpd of non-OPEC production in 2018 and 1.3 million bpd in 2019. On Friday, U.S. President Donald Trump is widely expected to deny a waiver on oil-related sanctions under the terms of the United Nations -led nuclear agreement, a decision that could shelve millions of barrels of Iranian oil on the European market.

Brent crude oil prices are up 7 percent from December 1 and 40 percent, or almost $20 per barrel, more than the first week in July. To stabilize the oil market and stop prices from continuing to fall, a change in strategy was needed and many producers cut their production.

The IEA warned that mostly due to US shale, total supply growth could exceed demand growth.

At the time, political opposition to then-president Hugo Chavez organized the industrial action to force a new presidential election, resulting in the shuttering of all but 0.6 MMBPD of crude oil production. Demand is expected to climb an additional 340,000 bpd in 2019 to 20.65 million bpd, the agency said.

The Energy Information Administration (EIA) recently unveiled its Short-Term Energy Outlook, which is forecasting the price of crude oil to rise about 13 percent or $7/barrel by 2019. The Saudi state oil company is expected to debut this year.

Overall, dry natural gas production averaged 73.6 billion cubic feet per day in 2017, up 1 percent from 2016.

The Energy Information Admin is out with its US inventories report at 10:30 am ET.

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