USA oil extends gains to hold near three-week high

USA oil extends gains to hold near three-week high

US crude oil production increased steadily through 2017, reaching its highest level in more than three decades.

This is coming as the International Energy Agency (IEA) has predicted that the United States would overtake Russian Federation as the world's biggest oil producer by 2019 at the latest, as the country's shale oil boom continues to upend global markets.

Strength in the dollar also weighed on crude prices as a rising greenback diminished the appeal of commodities priced in the USA currency.

West Texas Intermediate (WTI) crude CLc1 futures rose 78 cents to settle at $63.55 a barrel, trading between $62.33 and $63.73.

'Prices will likely be more volatile in 2018 than 2017, driven by whipsawing sentiment around the pace of USA growth'.

"The recent rise in global benchmark prices has not been matched by higher prices for Western Canadian producers". It's not out of the question to see a USA production record for oil soon. Why?

US crude exports last week surpassed 2 million barrels a day for only the second time on record, according to US Energy Information Administration data on Thursday, while stockpiles at Cushing shrank for a ninth straight week to 30 million barrels.

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Oil gained as Libya's crude exports from a key terminal were disrupted and Saudi Arabia pledged that global producers will ease their output curbs without shocking the market.

The 2018 federal budget, released February 27, did not have good news for the oil sector, with a forecast for lower oil prices.

The Organization of the Petroleum Exporting Countries (OPEC), along with some non-OPEC members led by Russian Federation, agreed in December to extend oil output cuts until the end of 2018.

For the record, al-Falih foresees a monitoring mechanism not too far removed from the one that now governs the OPEC cuts: "What we want is an evergreen framework that brings producers from OPEC and non-OPEC (countries) together in a market monitoring fashion that allows us to take quick decisions".

Most of the drawdown has come from the liquidation of bullish long positions rather than the establishment of new bearish short ones and it has been proportionately greater in fuels rather than crude. However, inventories are forecast to have risen by 2.7 million barrels last week, a preliminary Reuters poll showed on Monday.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: Russia vs Saudi vs US oil production ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^. "The prices will lower down and remain steady most probably by the end of 2019". US crude exports bounced around between 0.5 million barrels per day (mb/d) and 1 mb/d in the first half of the year, a level that jumped to a range between 1 and 2 mb/d in the third and fourth quarters. According to a recent study by the EIA, under certain scenarios, total U.S. crude oil production could surpass 14M b/d by 2050.

WTI crude oil rose by 0.44% and is now worth 63,83 per barrel.

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