Thursday, 26 April 2018
Latest news
Main » Oil prices sit at three-year highs as march to $70 slows

Oil prices sit at three-year highs as march to $70 slows

13 January 2018

Analysts warned the market is not paying enough attention to US production increases. March Brent fell a penny to $69.25.

US West Texas Intermediate (WTI) prices reached a December 2014 high of $63.67 a barrel earlier on.

The 2017 Brent average of $54 was an increase of $10 over 2016 levels, EIA said, with prices increasing fairly steadily throughout the second half of 2017 and year-end prices higher than the annual average, ending the year at a daily price near $67 per barrel, “the highest level since December 2014.”. WTI the day before rose to its strongest since late 2014 at $64.77. The EIA says it will account for two thirds, or 800,000 b/d of the 1.2 mb/d of oil production growth expected between December 2017 to December 2019.

Members of the Organization of the Petroleum Exporting Countries fear current price gains could prompt US shale oil companies to flood the market.

KeyCorp Reaffirms "Hold" Rating for Tesla (TSLA)
Johnson Rice upgraded the shares of TISI in report on Monday, October 5 to "Buy" rating. (NYSE:CFG) rating on Friday, October 7. Mckinley Capital Management LLC Delaware acquired a new position in shares of Tesla in the third quarter worth about $106,000.

Crude remain bid as the Organization of the Petroleum Exporting Countries ( OPEC ) and its a llies extend the production cuts from 2017, and oil prices may continue to exhibit a bullish behavior as the group stays on course to reduce supply.

Some 800,000 bpd of the projected 1.2 million USA increase from December 2017 to December 2019 is expected to come from tight rock formations in the Permian region in Texas and New Mexico, the agency said.

Major oil producing-countries have grown concerned that as prices remain near these levels, it will spur additional production from USA shale patches in Texas and North Dakota, risking overwhelming the market with additional supply, and hurting OPEC's market share.

Fatih Birol, head of the Paris-based International Energy Agency, said oil prices at $65 to $70 risked encouraging more oversupply from US shale drillers. "However, there are definitely issues supporting the market".

France tries to stem damage from failed baby milk recall
Lactalis ordered the recall of milk sold in some 30 countries after salmonella was found in one of its factories. The food had been made by France's Lactalis , one of the largest dairy conglomerates in the world.

USA crude production is forecast to average 10.3 million barrels a day in 2018, a record level.

OPEC crude oil production is forecast to increase by 0.2 MMBPD in 2018, partially reflecting the Energy Information Administration's expectation of Libya maintaining relatively high production levels achieved near the end of 2017, according to EIA's just-released Short-Term Energy Outlook (STEO).

"In general, we'll probably see more noise and rhetoric if prices trade above $70 a barrel in the coming days to push this market back down to lower levels".

Later-dated futures trading lower than the spot price is known as backwardation, and is expected to inhibit production because it implies a lower price for future barrels sold.

Police investigating report of man cutting off girl's hijab
The outrage that two young, innocent, Canadian kids could face such an ugly attack over a hijab clearly struck a nerve. The Toronto District School Board confirmed the attack took place, and said the girl is in the sixth grade.

Oil prices sit at three-year highs as march to $70 slows