Crude prices continue to rise
By Sara Israfilbayova
World oil prices continue to show positive dynamics on Tuesday on data on the suspension of the pipeline Forties in the North Sea.
U.S. West Texas Intermediate (WTI) crude futures were at $57.33 a barrel up 17 0.3 percent, from their last settlement, International Brent crude futures were at $63.55 a barrel, up 0.2 percent, Reuters said.
Investors continue to monitor the situation with the repair part of the pipeline Forties. Earlier, production at the Forties field was stopped due to unplanned repairs of part of the pipeline. It provides delivery of raw materials from 85 fields in the North Sea and pumps about 450,000 barrels per day. The extraction of raw materials has been stopped for a week.
“The Forties pipeline closure will continue to put a floor under Brent crude,” said Jeffrey Halley of futures brokerage Oanda.
World reserves of raw materials are gradually reduced due to limitations and interruptions in oil production.
“Raw materials stocks in OECD countries decreased by 40 million barrels in October to 2.92 billion barrels, while world oil reserves dropped by 61 million barrels to 5.48 billion barrels, thus in the fourth quarter of 2017 there will be a shortage of supply (1 million barrels per day),” said analysts from Bernstein Energy.
However, OPEC's attempts to reduce supply in the market are undermined production in the U.S.
The production of shale oil alone, excluding production at one of the largest fields in the Gulf of Mexico, is expected to grow 94,000 barrels per day in January, an increase for the 13th consecutive month, the U.S. Energy Information Administration (EIA) said on December 18.
In general, the production of raw materials in the U.S. will rise to a record level of 10.02 million barrels per day in 2018, according to the forecast of the EAI
In November 2016, the OPEC summit was held in Vienna, where OPEC members reached an agreement on reducing oil output by 1.2 million barrels per day. In December 2016 was a meeting of oil producers outside the OPEC. Following the meeting, was signed an agreement to reduce oil production by a total of 558,000 barrels per day starting from January 2017.
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
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