Oil prices inching up, US set to become world's top producer
- 6 months ago
Oil prices are moving up as trade tensions ease up between the U.S. and China, along with a reduction in U.S. inventories.
OPEC’s production cuts announcements however do not seem to be as joyous as last week, as the forecast has been lowered for 2019.
U.S West Texas Intermediate crude futures rose 0.57% to $51.43 per barrel; international Brent Crude Oil futures also rose by 0.6% at $60.50 per barrel.
U.S. inventories dropped by 1.2 million barrels by December 7, not as high as the expected 3 million barrels but nevertheless a welcomed sign.
However, OPEC announced that 2019 oil demand would decline to 31.44 barrels per day which is 100,000 less than it recently predicted and 1.53 million less than it produces as of now.
Societe Generale analyst Michael Wittner commented that, “Oil markets have been concerned about the possibility of weaker macroeconomic and oil demand growth; when combined with booming U.S. shale output, this could keep markets oversupplied in 2019, even with the OPEC cut," adding "At this point, the OPEC cuts appear to have merely put a floor under prices."
Crude production in the U.S. has reached 11. Million barrels per day and is set to overtake Russia and Saudi Arabia as the world’s number 1 producer.
Source: Smart Trend Team