Crude oil Dips As IEA Sees Shale Boom
Crude oil futures were rise at a slightly lower Tuesday morning amid speculation that U.S. production will continue.
OPEC cut supplies, but non-OPEC output, especially from the US shale fields is set to exceed the global demand in that year.
“For now, the upward momentum that drove the price of Brent crude oil to $70/Barrel is stalled, some of the investors profits, but also as part of the corrections we have seen recently in many markets. Most importantly, the underlying oil market fundamentals of early 2018 will look less supportive for prices,” said the IEA.
“By the end of this year, the United States, maybe even Russia will overtake the world’s leading companies. All indicators point to a continued rapid growth in the United States, the rising prices of the leading, after a couple of months, more holes, more sales, more production, and more hedging are to be interpreted in the perfect orientation,” the IEA said.
WTI light sweet crude oil was barrel by 30 cents to $58.99.