Petroleum futures were a little lower Tuesday early morning amidst speculation that U.S. production will continue to increase.
OPEC is cutting products, however non-OPEC output, especially from the U.S. shale fields, is set to exceed international demand this year.
“In the meantime, the upward momentum that drove the price of Brent petroleum to $70/bbl has stalled; partially due to financiers taking profits, however likewise as part of the corrections we have seen just recently in many markets. Most importantly, the underlying oil market basics in the early part of 2018 look less encouraging for costs,” stated the IEA.
“By the end of this year, the United States might likewise surpass Russia to become the worldwide leader. All the indications that recommend continued quick development in the United States remain in best positioning; increasing prices leading, after a few months, to more drilling, more completions, more production, and more hedging,” the IEA said.
WTI light sweet crude oil was down 30 cents to $58.99 a barrel.
The material has actually been supplied by InstaForex Company – www.instaforex.com