Crude oil futures were constant Tuesday, but not able to recoup current losses. Analysts indicate a surge in U.S. shale oil production as the cause of oil’s retreat from 4-year highs above $66.
WTI light sweet oil for March was down 0.2% at $59.19/ bbl.
“In the meantime, the upward momentum that drove the cost of Brent petroleum to $70/bbl has actually stalled; partially due to financiers taking profits, but also as part of the corrections we have seen just recently in numerous markets. Most importantly, the underlying oil market fundamentals in the early part of 2018 appearance less encouraging for rates,” stated the IEA.
“By the end of this year, the U.S. may also overtake Russia to end up being the global leader. All the signs that suggest continued fast development in the United States are in best alignment; rising costs leading, after a few months, to more drilling, more conclusions, more production, and more hedging,” the IEA stated.
The material has actually been provided by InstaForex Business – www.instaforex.com