United States oil output to top Saudi Arabia, Russia in 2019

Glen Mclaughlin
January 11, 2018

"Most of the planned retirements through 2020 will also be coal plants and natural gas steam turbines, based on information reported to EIA".

"EIA forecasts USA crude oil production to grow by 980,000 barrels per day in 2018, and we expect most of that growth to come from tight rock formations in Texas and North Dakota", Conti said. Analysts said that could have been the result of extreme cold temperatures across the United States. February West Texas Intermediate crude rose 61 cents, or 1%, to settle at $63.57 a barrel on the New York Mercantile Exchange.

"The lower draw in crude oil stocks, combined with the strong builds in product stocks is bearish news for prices".

Carsten Fritsch, analyst at Commerzbank, noted that "In view of sharply falling USA crude oil stocks and record-high compliance with the production cuts by OPEC [the Organization of the Petroleum Exporting Countries], market participants are convinced that the market is continuing to tighten".

Crude oil futures continued to rise Wednesday, extending 4-year highs amid further signs the global oil market is tightening.

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"When it comes to hedge fund buying in general the commodities trade is front-and-center and that momentum is building for oil", said Rob Thummel, portfolio manager at energy investment manager Tortoise in Leawood, Kansas.

Total products supplied over the last four-week period averaged 20.6 million barrels per day, up by 5.6 percent from the same period past year.

The report also noted that the North Sea Brent barrel stands at $64 per barrel, which is the highest it has been since November 2014, the start of the oil price crisis.

He warned, meanwhile, that oil prices above $60 per barrel could be a spoiler as US shale oil producers would take advantage of the rally by expanding their exploration and production work. OPEC, along with non-members including Russian Federation, have extended through the end of this year a deal to cut supply by 1.8 million bpd.

Other reports by MaliBehiribAe

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