• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 1 hour Recession Jitters Are Rising. Is There Reason To Worry?
  • 1 min Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 48 mins China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 7 hours US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 3 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 42 mins A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 7 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 2 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 11 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 10 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 8 hours Iran Is Winning Big In The Middle East
  • 6 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 5 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 6 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
Alt Text

Oil Craters On Fears of Currency War

Oil prices plunged on Wednesday…

Alt Text

Oil Rises As Market Awaits Saudi Move Counter Glut

Despite another gloomy demand forecast…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Strong Oil Demand Growth Supports Oil At $70

Although oil prices were down early on Tuesday, with Brent just below the $70 threshold, robust global oil demand growth and continued OPEC-Russia production cuts are currently supporting the price of oil hovering at the $70 mark and overriding concerns that U.S. shale will grow even more than predicted.

At 12:12pm. EST on Tuesday, WTI Crude was down 0.87 percent at $63.74, and Brent Crude down 1.61 percent at $69.13.

Oil prices this month have not been so high in three years.

At the end of 2017 and early 2018, the sentiment turned decisively bullish, amid geopolitical concerns—mostly from the Middle East, signs of a tighter oil market, and healthy global economic growth that boosts oil demand growth.

“This rally has been driven first by robust fundamentals, with strong demand growth and high OPEC compliance accelerating,” Goldman Sachs said in a note on Tuesday, as carried by Reuters.

“We see increasing upside risks to our $62 per barrel Brent and $57.5 per barrel WTI forecast for the coming months,” Goldman said.

“The market is hitting technical resistance. We need to see a confirmation of a true break past $70 a barrel,” Olivier Jakob at consultancy Petromatrix told Reuters. Related: Romania Poised To Ramp Up Gas Output

So far this year, the oil market has looked more to the bullish factors and ignored the largest bearish one—the rise in U.S. oil production. American production growth has stalled in recent days because of the very cold weather, according to analysts. EIA weekly data shows production was 9.492 million bpd in the week to January 5, down from 9.782 million bpd the previous week.

Hedge funds have also been very bullish lately and have taken a record net long position in the main crude oil and fuels futures and options contracts in the week to January 9. Although this has left the market too stretched and exposed to risk of a correction, it looks like not many money managers are currently willing to bet against an oil price increase just yet, Reuters market analyst John Kemp says.

By Tsvetana Paraskova 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
Download on the App Store Get it on Google Play