Oil near 2015 highs on strong China data

Oil near 2015 highs on strong China data

February WTI crude oil futures (DWT)(SCO) contracts rose 0.8% to $60.3 per barrel at 12:45 AM EST on December 29, 2017-the highest level since June 2015.

Data released today from EIA for October largely confirms earlier predictions by Rystad Energy that USA oil production could reach 10 MMbpd at the end of 2017.

"The key driver for the oil market this year has been that the OPEC and Russian production cuts were introduced, complied with and extended", said Ric Spooner, a Sydney-based analyst at CMC Markets.

US bank Goldman Sachs also warned of greater price volatility ahead, citing rising tensions in the Middle East, especially between OPEC members Saudi Arabia and Iran, along with soaring USA oil production. Following the huge additions now confirmed for October, we expect EIA could raise December data by up to 300,000 bpd.

China, in particular, has increased its intake of USA oil this year.

"Market participants expect OPEC to extend the production cuts beyond March 2018 and stocks to decline further", analysts at Commerzbank said, noting, however, that "the higher price level should lead to a further rise in US shale oil production".

WTI has recovered to more than $60 a barrel of late. State oil major China Petroleum & Chemical, or Sinopec, is reportedly considering joining plans for a pipeline connecting the Permian Basin in Texas, America's biggest source of shale oil, to the export hub of the Gulf of Mexico.

Some analysts think Friday's crude gains will evaporate sooner than later: "The current highs are unsustainable in the short-to-medium term, with prices likely to head back below $60 once we get past January", stated JBC Energy GmbH.

In the North Sea, the 450,000 bpd capacity Forties pipeline system was shut this month after a crack was found. America's growing presence as an oil exporter could even become a source of tension with Middle Eastern countries and Russian Federation.

Related news:

Hot News

isis-killer-beheading-video-story-top Northwestern Outlasts Kentucky In Music Bowl Thriller
Jan 01, 2018 - 04:31
But, on the next play, Johnson had his pass picked off by Kyle Queiro and he took it back 26 yards for the touchdown. It appeared on replays that the official bent down to help up Snell, who used his hands to decline the help.

isis-killer-beheading-video-story-top Carlos Carvalhal asks Jordan Ayew to be a 'leader' for Swansea
Jan 01, 2018 - 04:27
If this is the beginning, we will be better in the future because with more training to change the dynamic we will be better. We are still not in a good position, but the confidence is higher and belief is higher.

isis-killer-beheading-video-story-top Cleveland Metroparks Zoo celebrates Noon Year's Eve
Jan 01, 2018 - 04:26
As with the widely watched New Year's Eve event in New York's Times Square, the noontime celebration culminated in a ball drop. Many kids told 6 News they weren't sure of what the start of the new year means other than a time for fun.

isis-killer-beheading-video-story-top Call of Duty 'swatting' hoax leads to arrest in California
Dec 31, 2017 - 06:08
The FBI estimates that roughly 400 cases of swatting occur annually, with some using caller ID spoofing to disguise their number. One game player threatened to "swat" the other, and the second provided a false address - that of Finch.

isis-killer-beheading-video-story-top 'MAKE AMERICA GAY AGAIN' - Rainbow flag hung near Mike Pence's vacation home
Dec 31, 2017 - 06:07
Pence, who describes himself as a Christian, a conservative, and a Republican (in that order), has long held anti-LGBTQ views . The banner was hung either Wednesday or Thursday from a stone pillar outside Aspen, according to The Aspen Times .

isis-killer-beheading-video-story-top Mega Millions jackpot grows to $343 million after latest drawing
Dec 31, 2017 - 06:05
More than $640 million is still up for grabs in the nation's two biggest lotteries, CBS Boston reports . The highest all-time Mega Millions jackpot was $656 million, claimed by one person in 2012.

isis-killer-beheading-video-story-top Rajinikanth to end suspense over political debut shortly
Dec 31, 2017 - 06:04
Rajinikanth has been holding meetings with his fans for over six days in a second event this year. Amid thunderous applause, the actor, clad in a white kurta, asked "war means only election".

isis-killer-beheading-video-story-top Himachal Congress MLA slaps lady constable, gets a tighter one in return
Dec 31, 2017 - 04:33
He met party legislators, party candidates and district presidents, to discuss what went wrong in the elections. On this, Asha Kumari said that she was abused by the constable and she was compelled to use her hands.

isis-killer-beheading-video-story-top More Than 40 Dead After Explosions In Afghanistan's Capital
Dec 31, 2017 - 04:25
CNN reports nearly 100 people were at the cultural center at the time for the anniversary of the Soviet invasion of Afghanistan. In October, ISIS claimed responsibility for twin attacks on Shiite mosques in Afghanistan that killed almost 60 people.

isis-killer-beheading-video-story-top Region under wind chill warning
Dec 31, 2017 - 04:23
Colder air settled into the region this afternoon dropping our temperatures through out the day. Saturday's cold follows a blast of snow that started for the evening commute Friday night .

isis-killer-beheading-video-story-top Several Injured in Shooting at Long Beach Business
Dec 30, 2017 - 03:37
Authorities told the Press-Telegram in Long Beach that multiple people were transported to Long Beach Memorial Medical Center. Multiple victims were reportedly transported to a hospital, but their conditions or the number of people remains unconfirmed.

isis-killer-beheading-video-story-top Gomez, friends in Mexico for New Year celebration
Dec 30, 2017 - 03:24
As for her relationship with Justin Bieber , it seems that her family issues do not have anything to do with their reconciliation. This is in spite of the negative reaction that her family gave her when news broke out about the couple's rekindled romance.

isis-killer-beheading-video-story-top Bucs expected to retain Koetter
Dec 30, 2017 - 02:51
The Bucs have invested heavily in surrounding Winston with a supporting cast on offense at the expense of their defense. In his first season with the Bucs, Gruden led Tampa Bay to a 48-21 win over the Oakland Raiders in Super Bowl XXXVII.

isis-killer-beheading-video-story-top Apple Facing Egregious $999 Billion Lawsuit After "Batterygate"
Dec 29, 2017 - 02:24
We're proud that Apple products are known for their durability, and for holding their value longer than our competitors' devices. The new message goes on to explain how rechargeable batteries age and how the battery's performance changes over its lifespan.

isis-killer-beheading-video-story-top Wine about it: Disaster date ends with $1.5 mn in art ruined
Dec 29, 2017 - 02:11
During their date, when the pair returned to Buzbee's palatial home, Layman seemed too intoxicated, Buzbee told police. According to prosecutors, after returning to Buzbee's home following that date, Buzbee called an Uber for Layman.