Oil Steady Near $59 as IEA Says Shale May Derail OPEC Cuts
Oil steadied close $59 a barrel in New York as the Universal
Vitality Organization cautioned that rising U.S. supply may counter OPEC's
accomplishment in clearing an overabundance.
Creation cuts by
the Association of Oil Trading Nations and Russia have contracted a surplus in
oil inventories by around 80 percent, a report from the Paris-construct IEA
appeared in light of Tuesday. However the decrease in reserves will moderate as
climbing shale-oil yield puts America on track to outperform both Saudi Arabia
and Russia, the office anticipated.
“There are good
reasons for the price weakness, as U.S. shale oil production is still rising
rapidly,” said Carst
WTI for March
delivery was 3 cents lower at $59.26 a barrel on the New York Mercantile
Exchange as of 11:17 a.m. London time. The contract rose 9 cents to settle at
$59.29 on Monday, snapping six days of losses. Total volume traded was about 7
percent below the 100-day average.
Brent for April
settlement rose 14 cents to $62.73 a barrel on the London-based ICE Futures
Europe exchange. The contract declined 20 cents to $62.59 on Monday. The global
benchmark traded at a $3.62 premium to April WTI.
U.S. crude
inventories probably climbed by 3 million barrels last week, according to a
Bloomberg survey, while the Energy Information Administration said U.S. shale
oil will rise by 110,000 barrels a day in March.
Oil production
outside of OPEC will expand by 1.4 million barrels a day in 2018, about 250,000
a day more than the cartel projected last month, according to a report
published on Monday.
Still, OPEC
ministers say they aren’t worried. The market should re-balance this year, given
robust demand and as the group and its allies comply with pledges to curtail
supply, United Arab Emirates Energy Minister Suhail Al Mazrouei said Monday in
Dubai.
Other oil-market
news:
OPEC compliance
with crude output cuts rose to a fresh record in January from the previous
month, according to Bloomberg calculations from the group’s secondary-source
estimates in a monthly market report published Monday.
OPEC and non-OPEC
need to keep cooperating beyond 2018, the group’s Secretary-General Mohammad Barkindo
told reporters at a conference in Cairo.
Profits from
making gasoline fell to the lowest level since February 2017 as gasoline
supplies remain elevated and production stays high despite it being refinery
maintenance season.
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