• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 12 minutes The Plastics Problem
  • 47 mins SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 4 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 48 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 2 mins Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 2 hours EIA reports 12 mm bbls Inventory draw . . . . NO BIG DEAL . . . because U.S. EXPORTED RECORD 12 MILLION BARRELS DAY OF CRUDE + PETROLEUM PRODUCTS ! ! ! THAT'S HUGE !
  • 11 mins IMO 2020
  • 11 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 1 hour Its called reality: Economic, policy challenges to make Asia's energy transition painfully slow
  • 10 mins Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 11 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 6 hours On the hobby side of things
  • 13 hours Cap and trade: What could Oregon’s carbon policy cost you?
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