Economy

Price of crude oil climbs in global market

Price of crude oil climbs in global market

Aside from cryptocurrencies being the main subject of the markets recently, commodities are reaching new heights with crude oil on the rise with solid growth.

Brent crude futures slipped 54 cents, or 0.8 per cent, to settle at US$64.95 (RM253.38) per barrel.

Reuters reports that U.S. West Texas Intermediate (WTI) crude futures were sold at $61.18 a barrel at 0747 GMT, down 18 cents, or 0.3 percent, from their previous close.

Crude's rebound since a year ago is encouraging American drillers to pump even as they make efforts to be disciplined on spending, Patterson said. That split is driven by differing views over whether $70 a barrel sends US shale companies into a production frenzy that could cause prices to crash.

The report followed data from the EIA last week (http://www.marketwatch.com/story/oil-prices-under-pressure-ahead-of-us-supply-data-2018-03-07), which showed an increase of 86,000 barrels a day in total USA crude output for the week ending March 2.

The EIA last week also raised its production estimate for the full year, saying it expects total USA crude production to rise by 1.4 million barrels a day in 2018.

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The predictions and the forecasts for the oil production are looking grim at an expected 11 million barrels per day and more by the end of the year.

As American output continues to expand, more exports will sail to Asia, the traditional bastion of Middle East producers.

U.S. crude production from major shale formations is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd, the U.S. Energy Information Administration (EIA) said in a monthly report on Monday. Asia is the biggest buyer of the supplies.

The crude oil production in the United States rose to over 10 million barrels per day by the end of 2017, according to the International Energy Agency. Helping the dip, hedge funds and money managers cut their bullish wagers on US crude oil for the first time in three weeks, data showed on Friday.

Wood Mackenzie Ltd. last week forecast that USA crude shipments overseas will soar to nearly 4 million bpd by the mid-2020s, rivaling shipments from Iraq and Canada; and as far as Patterson is concerned, the Middle East won't give up Asia easily. "The deal will still officially be in place, but once we get into 2019 there's no chance that we will see some sort of deal".