• 2 minutes CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 7 minutes Sources confirm Trump to sign two new Executive orders.
  • 21 mins COVID is real now
  • 3 hours Is the oil & gas industry on the way out?
  • 19 hours In a Nutshell...
  • 24 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 19 hours Australian renewables zone attracts 27 GW of solar, wind, battery proposals
  • 3 hours The Boris Yeltsin of America
  • 3 days Where is Alberta, Canada headed?
  • 2 hours Why Oil could hit $100
  • 3 days No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 3 days Putin Paid Militants to Kill US Troops
  • 4 days A Real Reality Check on "Green Hydrogen"
  • 3 days During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 3 days The Coal Industry May Never Recover From The Pandemic
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Begins New Year With A Loss

Crude oil trading in the new year began with a slide, with Brent crude trading at US$53.12 a barrel at the time of writing, down 1.26 percent, and West Texas Intermediate at US$44.92 a barrel, down 1.08 percent.

Benchmarks remained pressured by rising U.S. production, which, according to the EIA averaged 11. 7 million barrels daily in the third week of December, and global economic growth worry, reinforced by the latest industrial activity data from China, which signaled a contraction.

According to a Reuters report, factory activity in China fell in December for the first time in more than two years in the latest indication that the trade war with Washington is taking its toll on one of the world’s largest and fastest-growing economies.

What’s worse for oil prices, however, is the fact that factory activity slowed down across all of Asia, not just in China. Asia is the biggest driver of crude oil demand, according to all forecasts, so any suggestion of faltering demand there would have a strong negative effect on prices.

It was on this economic growth worry that oil recorded its first annual loss since 2015, according to analysts. Brent crude shed a total 20 percent in 2018 while West Texas Intermediate lost almost 25 percent as shale boomers continue their relentless production growth despite pipeline bottlenecks in the Permian and shortages of frack crews that pushed up producers’ costs.

The outlook for this year, unsurprisingly, remains highly uncertain. U.S. production will likely continue to grow while OPEC and Russia begin cutting their output to stabilize prices. A Reuters poll among analysts revealed that most expect Brent to trade below US$70 a barrel this year, pressured by U.S. production growth and slower economic growth expectations that would offset any positive effect on prices from the OPEC+ crude oil production cuts.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News