Equity World – Crude oil prices fell to their lowest level in a week at the end of trading on Thursday morning (19/01) on expectations US producers will increase production, while OPEC signaled the decline of global oil supply surplus this year as a producer group production fell from record highs.
US crude oil futures price of West Texas Intermediate (WTI) fell $ 1.40, or 2.7 percent, at $ 51.08 per barrel.
Brent crude futures, the international benchmark for oil prices, fell $ 1.51, or 2.7 percent, at $ 53.96 a barrel at 02:34 ET (1734 GMT).
US shale production beat three-month decline in February, the US Energy Information Administration said on Tuesday, as energy companies increase drilling activity with crude oil prices hovering near 18-month highs.
Production of February will be a slight increase 40 750 barrels per day (bpd) to 4.748 million barrels per day, the EIA said. In January, it was expected to fall by 5,900 barrels per day.
Organization of Petroleum Exporting Countries signaled surplus oil supply fell in 2017 on Wednesday as the exporter group’s production slipped from a record high ahead of a deal to cut the supply and manufacturers of outdoor showing early signs are positive from compliance with the agreement.
Under the agreement, OPEC, Russia and non-OPEC producers have promised to cut oil production by nearly 1.8 million barrels per day, initially for six months, to carry supplies back in line with consumption.
However, OPEC, in its monthly report, also pointed to the possibility of a rebound in US output, due to higher oil prices following supply cuts by other manufacturers support increased shale drilling.
OPEC, excluding Indonesia, produced 33.085 million barrels per day (bpd) last month, according to OPEC figures that dikupulkan from secondary sources, down 221,000 bpd from November.
OPEC cut its forecast for supply in 2017 from countries non-members following a pledge by Russia and other non-members to join OPEC to limit production.
OPEC expects non-OPEC supplies rose 120,000 barrels per day this year, down from growth of 300,000 barrels per day last month, although the forecast revised up from US supply.
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