Crude Oil Prices Increased in 2017, and Brent-WTI Spread Widened

Opec-led production cuts have begun to have an impact

But other analysts are highlighting the increasing levels of U.S. oil production as a potential barrier to prices maintaining high levels this year.

Brent crude oil futures briefly broke back above $70 per barrel while West Texas Intermediate was trading around $64 per barrel.

The and allies including Russian Federation are keeping supply limits in place in 2018, a second year of restraint, to reduce a price-denting glut of oil held in inventories.

The price of crude oil has risen from $68 to $70 per barrel in the global market as a result of rising demand, thus raising hope for the implementation of the nation's N8.6 trillion 2018 budget. At least this is what the Iranian Minister of Oil said the other day. Economists had expected prices to rise by 0.2 percent.

Data from the U.S. Commodity Futures Trading Commission shows the size of the short position for swap dealers has climbed into record territory, an indication of increased producer hedging.

USA crude oil production is forecast to average 10.3 million b/d in 2018, marking the highest annual average production in US history, surpassing the previous record of 9.6 million b/d set in 1970.

WTI is still in the February contract, while Brent moved into March.

Craig at Platts, meanwhile, said gasoline demand could inch lower and it may be a matter of time before oil prices reverse course.


The price rise was in part due to exceptionally large draw of 11.19 million barrels of US crude oil inventories reported by the American Petroleum Institute (API) for the week ending January 5.

Worldwide crude demand is 96 million barrels a day and the country imports around 4.2 million barrels daily or 1,568 million barrels per annum, making it the third-largest consumer globally.

As a result, Asian refiners processed an unprecedented 23 million barrels per day (bpd) of crude oil in late 2017.

Brent crude futures traded 15c lower at $69.11 a barrel at 10.11am GMT.

Mr. Trump faced a series of deadlines waivers this week, and the prospect of renewed sanctions that could crimp Iran's crude exports contributed to higher prices in recent days. Average output next year is forecast to reach 10.85 million barrels per day putting it on par with Saudi Arabia and Russian Federation.

The strength of the oil market would have caught many analysts by surprise as the consensus forecast for oil is probably somewhere in the US$50s per barrel for 2018.

"But if short-term influencers like the Iranian protests and Venezuela production issues were to be sorted out, a sharp price reversal could very well be in the cards".

Such an outcome will provide a huge upswing in valuation (and share prices) of the likes of Woodside Petroleum Limited (ASX: WPL), Oil Search Limited (ASX: OSH), Santos Ltd (ASX: STO) and Origin Energy Ltd (ASX: ORG).

Related News:

  • Saudi Arabia women score right to watch men's football in stadiums

    Saudi Arabia women score right to watch men's football in stadiums

    This easing of the strict gender segregation was announced as a part of Crown Prince Mohammed bin Salman's ambitious reforms. The first stadium to open its doors to women was in the Red Sea city of Jiddah.

    Walt Disney (DIS) Given "Sell" Rating at Pivotal Research

    It dived, as 90 investors sold DIS shares while 649 reduced holdings. 95 funds opened positions while 563 raised stakes. The firm earned "Buy" rating on Friday, July 28 by Northland Capital. (NYSE:EGHT) to report earnings on January, 24.
    Girl should be allowed to take medical marijuana at school: suit

    Girl should be allowed to take medical marijuana at school: suit

    Traditional medicines had limited success in helping Ashley with the seizures - she would suffer one to three seizures per day. The 11-year-old student is being treated for leukemia with chemotherapy.
  • Carrie Underwood's 'The Champion' to open Super Bowl LII

    Carrie Underwood's 'The Champion' to open Super Bowl LII

    Carrie will also open NBC's Super Bowl LLI on February 4 with a music video filmed previous year for " The Champion ". Country music sensation Carrie Underwood has traded in her guitar and harmonica for a shot at becoming a pop star.
    Yolanda Hadid: Kendall Jenner is 'beautiful'

    Yolanda Hadid: Kendall Jenner is 'beautiful'

    Gigi shared an adorable throwback image as a toddler in her mother's arms to her almost 38 million followers. So - as any mum would be- Yolanda Hadid was feeling pretty damn chuffed yesterday.
    Californian Confesses To Cold Case Slaying In Emotional TV Interview

    Californian Confesses To Cold Case Slaying In Emotional TV Interview

    Hawkins reached out to KRCR 7 ABC news to confess to his crime on camera before turning himself into the police station next door. Hawkins told KRCR he spoke with McAlister's family several times and wanted to meet in person to ask for forgiveness.
  • Court rules Pennsylvania can keep congressional district map

    Court rules Pennsylvania can keep congressional district map

    The core issue, he said, is whether elected government is going to represent the citizenry and not a minority party seizing power. Pro-GOP groups also made extensive efforts to purge thousands of legal but inactive voters in blue epicenters.
    Supreme Court will decide if online retailers must collect sales tax

    Supreme Court will decide if online retailers must collect sales tax

    To that end, 36 states have joined South Dakota's legal crusade, urging the Supreme Court to reverse its earlier ruling. His case was heard by an administrative law judge, and he received a lifetime ban from investment-related work.
    Lenovo Smart Display is an Epic Home for Google Assistant

    Lenovo Smart Display is an Epic Home for Google Assistant

    You'll also be able to deploy Smart Displays as a digital photo frame, with images housed in the cloud through Google Photos. The first one comes with 8-inch HD touchscreen display and the second one comes with 10-inch Full HD touchscreen display.
  • Rory McIlroy says rib injury is fine, but reveals heart irregularity issue

    Rory McIlroy says rib injury is fine, but reveals heart irregularity issue

    RORY McILROY has revealed his secret heart scare - and how he will now require routine medical check-ups for the foreseeable future.
    West Ham Open To Offers For Out Of Form Javier Hernandez

    West Ham Open To Offers For Out Of Form Javier Hernandez

    It has now been claimed West Ham have made a move for the 28-year-old, although Bournemouth have rejected their £5million bid. Bookmakers believe that Hernandez could be heading to Major League Soccer with the new side Los Angeles FC.
    Protests Put Spotlight on Iran's Vast and Shadowy Syria War

    Protests Put Spotlight on Iran's Vast and Shadowy Syria War

    She called on all of her other colleagues in the Security Council to join her in amplifying the message of the Iranian people. Four UN human rights experts on Friday urged Iran to respect protesters' rights and allow freedom of expression and assembly.


Most liked

Dark Souls Remastered Runs At Upscaled 4K/60FPS On PS4 Pro and XB1X
It won't have the visual fidelity of the other platforms, but it does offer the option to play Dark Souls on a handheld. Dark Souls: Remastered launches on May 25th, 2018, for PC, Xbox One , PlayStation 4 and Nintendo Switch .

Ex-RB Marcus Lattimore joins SC coaching staff
Former South Carolina All-American running back Marcus Lattimore will start Monday in an off-the-field role. In the a year ago , he'd earn $5.2 million.

Queen Elizabeth Says Wearing A Crown Has One Significant Downside
The Queen may enjoy the great privilege of wearing a crown, but the extravagant headpiece doesn't come without its downside. Meanwhile, the Smithsonian Channel is airing a special to mark the 65th anniversary of Queen Elizabeth's coronation.

Stock that will multiply your investment: Marathon Oil Corporation (NYSE: MRO)
Marathon Oil Corporation is comprised of insider ownership at 0.22% and institutional ownership of 82.50%. (NYSE:DIN). Marathon Oil Corporation (NYSE: MRO ) operates in the Independent Oil & Gas segment of the Basic Materials sector.

Meghan Markle's Sister Samantha Grant Asks For Forgiveness, Wants Royal Wedding Invite
You go through similar things - it's a bond, and it's something you know you've tackled together and come out better for it. US President Donald Trump is not getting a wedding invite from Prince Harry and Meghan Markle .

Burning Stock on the move: Apple Inc. (NASDAQ:AAPL)
Institutional investors and hedge funds own 60.17% of the company's stock. 128 funds opened positions while 644 raised stakes. The iPhone maker reported $2.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $0.20.

Flu Widespread in 36 States, Deaths Reported: CDC
The health department said people should request the " quadrivalent vaccine " that protects against four strains of flu. In addition to taking the flu vaccine, other measures can reduce or prevent the spread of influenza.

Vikas is mean to Hina
He asks her to help him win the Rs 3 lakh amount as he feels she is anyways going to be the victor and get the lump sum. Puneesh listens to her and later tells Hina that Shilpa has no emotions and that she broke her mug without any feelings.

Levack's Locks For The NFL Divisional round
Foles is a solid backup, but so far he has had trouble integrating himself into the offense that was so successful with Wentz. The Steelers' defense limped down the stretch and hasn't been the same since linebacker Ryan Shazier was lost for the season.

CELG) — Celgene Corporation (NASDAQ
The market capitalization (Stock Price Multiply by Total Number of Outstanding Shares) for the company is reported at $83.66B. The stock of Celgene Corporation (NASDAQ: CELG ) has "Equal-Weight" rating given on Friday, October 27 by Barclays Capital.

YorkBridge Wealth Partners LLC Acquires 8758 Shares of General Electric (GE)
Diversified Investment Strategies Llc bought 13,151 shares as the company's stock declined 7.64% while stock markets rallied. Also, Director Francisco Dsouza bought 55,000 shares of the stock in a transaction that occurred on Monday, November 20th.

The Health 202: Mental-health professionals can't agree on evaluating Trump's psyche
Physical exams for presidents have been a norm since Richard Nixon , according to ABC News, but they aren't required. Perry said she believed presidents should be subject to a raft of tests to establish they are fit to serve.

Pakistan to bat first in opposition to New Zealand in 2nd ODI
Pakistan need a win to draw level in the five-match series after losing the first game in Wellington. And so it proved to be, as Pakistan went on to record their lowest ODI total in 25 years.

Trump says willing to speak to Kim Jong
The following day, the United States accepted South Korea's proposal to delay yearly military drills until after the Olympics. US President Donald Trump has said that he was willing to speak to North Korean' Kim Jong-un.

Former President Obama Says Americans Live in Partisan Bubbles
There are also lots of jokes about both men being quote-unquote unemployed. "I'm at Bed Bath & Beyond picking out wire hangers". The clip ends with him asking if it was not something the host does, to more laughter from Letterman and the audience.