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Oil prices were steady on Monday, buoyed by firm demand and a fall in inventories. However, it remains under pressure due to high output.

U.S. West Texas Intermediate (WTI) crude futures CLc1 stood at $48.85 per barrel, higher by three cents.

According to Anz bank, prices are supported by a report from the International Energy Agency (IEA) which stated that crude oil stockpiles were now below 2016 levels. Stocks continue to be at 219 million barrels above a 5-year average, which is a level that OPEC is aiming for with its output cuts, the IEA said.

The agency increased its 2017 demand growth forecast to 1.5 million barrels per day (bpd) from 1.4 million bpd in its earlier monthly report and said it sees demand to grow further by 1.4 million bpd in 2017.

Shale production in the biggest U.S. oilfield should increase by as much as 300,000 bpd by December, according to industry forecasts.

Drillers added three rigs looking for new oil in the week to Aug. 11 which brings the overall count up to 768, the most since April 2015, according to General Electric Co’s Baker Hughes energy services company.

The material has been provided by InstaForex Company – www.instaforex.com

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