Oil price slides on prospect of rising US production
- Buz Investors rising US production The commodity is trading at $51.65 per barrel at 10:40 GMT this morning, 1.68% lower from the New York close.
- Crude oil witnessed a high of $52.79 per barrel and a low of $51.55 per barrel during the session. In the New York session yesterday, crude oil fell 1.22% to close at $52.53 per barrel, after the EIA forecasted a monthly rise of 41,000 barrels a day in February oil production to 4.7 million barrels a day from seven major US shales. Immediate downside,
- the first support level is seen at $50.96 per barrel, while on the upside, the first resistance level is at $52.93 per barrel.
rising US production
rising US production Oil prices fell on Wednesday on expectations that U.S. producers would boost output, just as OPEC signalled that a global supply-reduction deal will shrink the oil glut this year.
Brent crude futures, the international benchmark for oil prices, were down 75 cents $54.72 a barrel at 1230 GMT.
U.S. West Texas Intermediate (WTI) crude oil futures were trading down 81 cents at $51.67 per barrel.
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rising US production
U.S. shale production is set to snap a three-month decline in February, the U.S. Energy Information Administration said on Tuesday, as energy firms boost drilling activity with crude prices hovering near 18-month highs.
February production will edge up 40,750 barrels per day (bpd) to 4.748 million bpd, the EIA said. In January, it was expected to drop by 5,900 bpd.
“It’s the eternal question about the current flat price and what it does to US crude oil production,” Petromatrix oil strategist Olivier Jakob said.
The Organization of the Petroleum Exporting Countries, excluding Indonesia, pumped 33.085 million barrels per day (bpd) last month, according to figures OPEC collects from secondary sources, down 221,000 bpd from November, OPEC said in a monthly report on Wednesday.
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