• 2 hours Nigeria Among Worst Performers In Electricity Supply
  • 8 hours ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 13 hours Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 17 hours Saudis To Award Nuclear Power Contracts In December
  • 20 hours Shell Approves Its First North Sea Oil Project In Six Years
  • 21 hours China Unlikely To Maintain Record Oil Product Exports
  • 22 hours Australia Solar Power Additions Hit Record In 2017
  • 23 hours Morocco Prepares $4.6B Gas Project Tender
  • 1 day Iranian Oil Tanker Sinks After Second Explosion
  • 4 days Russia To Discuss Possible Exit From OPEC Deal
  • 4 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
  • 4 days Kenya Cuts Share Of Oil Revenues To Local Communities
  • 4 days IEA: $65-70 Oil Could Cause Surge In U.S. Shale Production
  • 4 days Russia’s Lukoil May Sell 20% In Oil Trader Litasco
  • 4 days Falling Chinese Oil Imports Weigh On Prices
  • 4 days Shell Considers Buying Dutch Green Energy Supplier
  • 5 days Wind And Solar Prices Continue To Fall
  • 5 days Residents Flee After Nigeria Gas Company Pipeline Explodes
  • 5 days Venezuela To Pre-Mine Petro For Release In 6-Weeks
  • 5 days Trump Says U.S. “Could Conceivably” Rejoin Paris Climate Accord
  • 5 days Saudis Shortlist New York, London, Hong Kong For Aramco IPO
  • 5 days Rigid EU Rules Makes ICE Move 245 Oil Futures Contracts To U.S.
  • 5 days Norway Reports Record Gas Sales To Europe In 2017
  • 5 days Trump’s Plan Makes 65 Billion BOE Available For Drilling
  • 6 days PetroChina’s Biggest Refinery Doubles Russian Pipeline Oil Intake
  • 6 days NYC Sues Five Oil Majors For Contributing To Climate Change
  • 6 days Saudi Aramco Looks To Secure $6B In Cheap Loans Before IPO
  • 6 days Shell Sells Stake In Iraqi Oil Field To Japan’s Itochu
  • 6 days Iranian Oil Tanker Explodes, Could Continue To Burn For A Month
  • 6 days Florida Gets An Oil Drilling Pass
  • 7 days Oil Prices Rise After API Reports Staggering Crude Oil Draw
  • 7 days Tesla Begins Mass Production Of Solar Shingles
  • 7 days EIA Boosts World Oil Demand Forecast For 2018 By 100,000 Bpd
  • 7 days Businessman Seeks Sale Of $5.2B Stake In Kazakhstan Oil Field
  • 7 days Exxon Accuses California Of Climate Change Hypocrisy
  • 7 days Norway’s Recovering Oil Industry Resumes Hiring
  • 7 days $2.3 Million Seized Following Singapore Oil Heist
  • 7 days China Nears 2016 Carbon Emissions Target
  • 8 days Oil Companies Respond Slow To New U.S. Lease Plan
  • 8 days Maduro To Issue First 100 Million Petros Despite Skeptics
Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Oil Sees Strongest Start Of Year Since 2014

offshore rig

Brent crude and West Texas Intermediate started trading in 2018 above US$60 a barrel both for the first time since January 2014, before prices collapsed. WTI hit a high of US$60.68 a barrel in midmorning Asian trading before retreating somewhat to US$60.64, while Brent crude booked a high of US$67.23 a barrel before slipping to US$67.20.

Analysts saw strong demand and tightening supply behind the price rise. In fact, fundamentals and the market’s expectations about fundamental developments this year were strong enough to offset the early restart of the Forties oil pipeline on December 30. The Forties was shut down in early December to repair hairline cracks, which sent Brent soaring as the pipeline supplies some 450,000 bpd of crude oil to the UK.

The fundamental indicators also offset the resumption of production in Libya, after a pipeline blast took off somewhere between 70,000 and 100,000 bpd from daily production. According to a report by Reuters, the pipeline was repaired by December 31 and the oil flow was being gradually resumed.

The last week of 2017 also saw news about higher crude oil import quotas for independent Chinese refineries, signaling a further rise in oil demand in the world’s second-largest consumer. Beijing issued quotas for a total 121.32 million tons (2.43 million bpd) of crude oil imports for 44 companies, and this is just the first quota batch for the year. Related: There Aren’t Enough Truckers In Texas

To add to the bullish sentiment, U.S. crude oil inventories continued to fall, booking a cumulative fall of as much as 20 percent since March 2017, when they hit a record-high. Although not everyone agrees that EIA’s inventory data is an accurate indicator of supply and demand in the world’s top consumer, the authority’s weekly reports still have market-swinging power.

On the flip side, U.S. oil production continues to grow and will soon break the 10-million bpd barrier, analysts believe. At the end of the year, the daily production rate stood at 9.75 million barrels and higher prices will likely motivate a faster increase this year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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