The price of oil remained unmoved on Monday’s session as it was helped by dropping U.S. stockpiles and robust demand. However the heightened productions from OPEC producers somehow prevent futures from further rising.
According to the ANZ bank, the released report form the International Energy Agency (IEA) suggesting that crude oil inventories were currently below the levels form last year somehow supported prices. The IEA still said that stocks remained more than 219 million barrel above a 5-year average regardless of its report. The said level was the target of producers from Organization of Petroleum Exporting Countries (OPEC) in its output reductions.
The organization also raised its growth expectations to 1.5 million barrel per day (bpd) for this year from its previous monthly report with 1.4 million bpd. It also estimated demand to rise as much as 1.4 million barrel per day this coming 2018. Markets are still sufficiently supplied due to strong production, even on the absence of a strong demand.
Looking on oil futures, U.S. West Texas Intermediate (WTI) crude prices advanced more than 3 cents to finish at $48.85 per barrel and international benchmark for oil Brent crude prices lost about 2 cents to settle at $52.08 per barrel on the day.
Industry forecasts suggest that the output of shale in the biggest U.S. oilfield should surge more than 300,000 barrels per day by December. The production of oil coming from New Mexico and Permian Basin of West Texas is the market’s center of attention due to its low costs.