Oil markets cling to near 3-year highs on tighter U.S. market

You'll pay more for gasoline next year even though U.S. crude oil production is expected to set records. Demand for gasoline is also setting records and U.S. prices are impacted by global oil production and demand

"This year's rapid rise in oil prices, which hit $70 this week, is backed by strong demand growth and a fall in oversupply on the back of the OPEC and non-OPEC pact, not only by political tensions, Mazroui said". That's slightly below the five year average of just over 420 million barrels. 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.

"Inventories ended 2017 9.3 percent above the five-year average, a stark contrast to the 35.6 percent surplus seen at the end of 2016", Oil Futures Editor Geoffrey Craig said in a statement emailed to UPI.

Brent crude futures, used in the pricing of more than half the world's oil, rose as much as 1.2 percent to the highest since December 4, 2014. "This reduction in the size of excess stocks emerged as a catalyst for higher oil prices".

Crude oil futures slipped from 3-year highs Friday, as traders booked profits from a furious rally inspired by a weak dollar and hopes the global market will re-balance this year.

The West Texas Intermediate for February delivery increased 0.23 US dollar to settle at 63.80 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery added 0.06 dollar to close at 69.26 dollars a barrel on the London ICE Futures Exchange.

Analysts and traders have warned about the risk of a price correction since the start of 2018, but they say overall market conditions remain strong, mainly due to output cuts led by the Organization of the Petroleum Exporting Countries and Russian Federation. OPEC in December, however, produced about 50,000 barrels per day more than in November.


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

"The ability to hold above $60 per barrel will likely be tested as refinery demand ebbs", he said.

The market was supported by OPEC-led production cuts and expectations that US crude inventories have dropped for an eighth week.

Federal U.S. estimates show total crude oil production hit 9.78 million barrels per day in the week ending December 15, a record high that Craig said was out of reach because of the recent U.S. cold snap.

Ole Hanson, the head of commodity strategy at Saxo Bank, told UPI momentum is carrying the narrative.

Related News:

  • Rafael Benitez: 'Newcastle United are working on transfers'

    Rafael Benitez: 'Newcastle United are working on transfers'

    Chelsea winger Kenedy is one target, but Antonio Conte is not yet ready to let the 21-year-old leave Stamford Bridge. The hope is that the stand-off between Benitez and Ashley could end now that the billionaire is back in the country.
    Theresa May pledges Brexit Britain will lead global fight against plastic pollution

    Theresa May pledges Brexit Britain will lead global fight against plastic pollution

    Microbeads will no longer be used in cosmetics and personal care products, according to the ban. It also aims to increase the collection and recycling of plastics packaging.
    How Insiders and Institutions are Trading Netflix, Inc. (NFLX)

    How Insiders and Institutions are Trading Netflix, Inc. (NFLX)

    In Q3 of 2017, the company grew from 103.95 million worldwide subscribers to 109.95 million, blowing past growth targets . Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has risen 51.40% since January 12, 2017 and is uptrending.
  • Orioles avoid arbitration with Machado, Britton, 3 others

    Orioles avoid arbitration with Machado, Britton, 3 others

    Right-hander Kevin Gausman and second baseman Jonathan Schoop are Baltimore's only arbitration-eligible players without deals. But, having Machado and Paul Goldschmidt locked up at the corner for years to come would keep them in contention, for sure.
    House Votes to Renew Controversial NSA Surveillance Law

    House Votes to Renew Controversial NSA Surveillance Law

    The House rejected the amendment 233-183, in a closer vote than expected, and approved the reauthorization by a vote of 256-164. The bill still needs to be passed by the US Senate before heading to President Donald Trump for his signature.

    EPS Growth at Forefront For Exxon Mobil Corporation (NYSE:XOM)

    This company shares are -2.08% up from its target price of $108.54 and the current market capitalization stands at $387.07B. Moreover, Company Of Virginia Va has 2.63% invested in Exxon Mobil Corporation (NYSE: XOM ) for 216,372 shares.
  • BJP anti-Dalit, behind Koregaon riots: Delhi Minister

    BJP anti-Dalit, behind Koregaon riots: Delhi Minister

    Dilip Kamble, Minister of State for Social Justice said, "I condemn the violence incident and appeal to people to maintain peace". Parts of Mumbai came to a near standstill after Dalits blocked roads in several areas and forced shops to shut.

    WATT) — Energous Corporation (NASDAQ

    The market's smooth ride upward hit a bump on Wednesday when concerns rose that a jump in interest rates could derail the ascent. The investor is now holding $36.85 million shares due in part to a decrease of 1.05 million new shares in their portfolio.
    Pence Says US Is 'Natural Ally' For Iranians Seeking Freedom

    Pence Says US Is 'Natural Ally' For Iranians Seeking Freedom

    Other social-media videos from different Iranian cities showed clashes with security forces and a police station set alight. State TV said the demonstrations served as an "answer to the protests", which it blamed on "servants of the U.S".
  • UN considers Trump's 'shithole' remarks on Africa racist - Spokesman

    UN considers Trump's 'shithole' remarks on Africa racist - Spokesman

    Trump made the remark Thursday during a White House meeting after senators discussed revamping immigration rules, according to the Washington Post .
    Buffalo Bills fire offensive coordinator Rick Dennison

    Buffalo Bills fire offensive coordinator Rick Dennison

    That could be enough to make McCoy among the first calls the Bills make when they reach out for Dennison's replacement. We don't yet know what direction the Bills will go at quarterback, but we have an idea on who might replace Dennison.

    Time to Reconsider Valero Energy Corporation (VLO) After Making 52-Week High?

    Moreover, Nbt Commercial Bank N A has 0.13% invested in Yum! Bluestein R H And Com owns 5,050 shares for 0.02% of their portfolio. The market capitalization (Stock Price Multiply by Total Number of Outstanding Shares) for the company is reported at $99.10B.


Most liked

LLC Has $4404000 Stake in Wal-Mart Stores, Inc. (WMT)
Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. Ocera Therapeutics, Inc. operates as a clinical stage biopharmaceutical company. (NASDAQ:NFLX) rating on Tuesday, July 19.

Zac Brown Band Hits The Road
Once the line is in place, fans arriving after the wristbands were issued will be escorted to the end of the numbered line. Friday, Jan. 19 through LiveNation.com, Ticketmaster.com and Charge By Phone at 1-800-745-3000.

NY sues oil companies, plans divestment from pension funds
It appears that for New York City officials, the loss of so much potential wealth is valueless against the need to virtue signal. So rising sea levels caused by global warming will mean storms like Sandy are more likely to cause harmful floods.

Disney announces Star Wars: Rivals, a PvP shooter for Android and iOS
The characters all have special abilities, like Vader's choke, Admiral Ackbar's orbital strike, or Chewie's bowcaster. There's no official release date yet, but you can register for the game on Google Play by hitting the button below.

Search for victor of $55 million Powerball jackpot ticket sold in Brunswick
They didn't know they had won until someone checked the numbers the following day during his shift at the courthouse. Scole Lotto & News owner Sam Misiano said he was over-the-moon his outlet had sold the winning ticket.

Fusion GPS: Trump-Russia firm chief's transcript released
Several GOP-led committees are now investigating whether the dossier formed the basis for the FBI's initial investigations. A spokesman for the committee chairman, Sen. "Why waste time talking about something that's not legitimate", he said.

Scientists Caught Distant Supermassive Black Hole Burping
Black holes consume all matter in the near-by vicinity ans supermassive black holes are the point around which all galaxy's orbit. Supermassive black holes are the largest form of the space giant and are typically found in the centre of big galaxies.

Putin says Kim Jong Un 'certainly won' latest standoff on nuclear weapons
Trump agreed , saying his country may also be open to talks with Pyongyang if conditions are met, Cheong Wa Dae said earlier. By keeping up the dialogue with Seoul, Pyongyang can use the talks as a shield against military pressure from the U.S.

Paul Ryan Says Trump's 'Sh*thole Countries' Comment Was 'Unfortunate'
We do not want to fix the symptom and ignore the cause. "I see this as a thing to celebrate and I think it's a big part of our strength".

Loyal Dog Walks 40 Miles to Find Previous Owners
The dog is now at an animal shelter closer to her previous home until she can find a forever-home. And when she couldn't find her family the first time, the homesick pooch made the journey again.

Rick Scott: Florida can't risk potential damage to beaches from drilling
Washington Governor Jay Inslee, California Governor Jerry Brown and Oregon Governor Kate Brown are opposed to this action. Department of the Interior Secretary Ryan Zinke announce there will be no new offshore drilling in Florida.

Trump Denies Using Vulgar Slur; Top Democrat Says He Said It
I want a merit based system of immigration and people who will help take our country to the next level. In a statement after Trump's comments were first reported , the White House did not deny them .

Martin O'Neill And Roy Keane On Verge Of Irish Exit
Should Keane not leave then Steve Walford, Steve Guppy and Seamus McDonagh are in contention for roles. Following the sacking of Mark Hughes, Stoke targeted Derby's Gary Rowett as his replacement.

Fast bowlers central to South Africa's plans ahead
The Indian skipper emphasised that team selection was less about individuals but more about "finding the right balance". The information from the groundsman was that the grass on the wicket had been burnt from the heat over the last week.

New Black Panther Featurette Focuses On Dora Milaje
On the whole, it appears as if Black Panther's Doras aren't just T'Challa's bodyguards - they're a straight-up Wakandan strike force.