Oil buoyed by drop in number of U.S. drilling rigs

Oil prices up following crude inventories' fall

Brent crude was up 79 cents, or 1.2 percent, at $68.57 per barrel after hitting a session high of $68.74, its highest since May 2015.

Analysts say USA output may have levelled off over the holidays. OPEC appears determined to end the global supply glut with disciplined output quotas in 2018.

"This is a little more confirmation of what speculators have been looking for and after tomorrow's (U.S. government inventory) report, we'll see if they look to do some profit taking".

Oil in NY has traded above $60 a barrel and the global benchmark Brent has held above $66 since December as the Organization of Petroleum Exporting Countries (Opec) and allied suppliers capped output. A weekly decline in the number of USA drilling rigs led both contracts to a higher close on Monday (http://www.marketwatch.com/story/api-data-reportedly-show-a-weekly-drop-in-us-crude-supplies-2018-01-03).

The rise in prices is expected to drive gains in USA production during 2018, offsetting curbs by others.

Pump jacks bring oil up from wells in North Dakota.

Oil rose, clinging to last week's gains as political tensions in Iran and declining exploration work in the United States threatened output growth.

"The fact that the crude benchmarks are establishing highest levels since spring of 2015 on very little fresh fundamental input continues to suggest a strong market underpinning", said Jim Ritterbusch, president of Ritterbusch & Associates, in a Tuesday note. "We expect to see growth near 2 million barrels per day in 2018 and 1.3 million barrels per day in 2019".

US oil and gas production will continue to increase in 2019 as well, to the chagrin of OPEC and Russia-major exporters looking to curb production and reduce competition from American shippers.

A senior OPEC source from a major Middle Eastern oil producer said on Monday OPEC would boost output only if there were significant and sustained production disruptions from Iran and Venezuela.

Nationwide output will average 10.85 million barrels a day next year and 10.27 million this year, both surpassing the prior record of 9.6 million pumped in 1970, the Energy Information Administration said in its monthly Short-Term Energy Outlook, which included the first estimates for 2019.

Related News:

  • How High Doses of Ibuprofen May Impact Male Infertility

    How High Doses of Ibuprofen May Impact Male Infertility

    The study shows that ibuprofen use results in selective transcriptional repression of endocrine cells in the human testis. It is known to increase the risk of heart attacks and stroke if taken regularly in high doses for a long time.
    Apple Releases Security Updates for Spectre CPU Flaw

    Apple Releases Security Updates for Spectre CPU Flaw

    The researchers responsible for discovering the bug, including Google's Jann Horn, are thanked in the acknowledgments. Apple has released three new security updates aimed at protecting Safari and WebKit from the Spectre attack.
    HTC Vive Pro revealed alongside Vive Wireless Adaptor

    HTC Vive Pro revealed alongside Vive Wireless Adaptor

    Please whitelist us in your adblocker software so that we can continue to provide quality content. The Pro's updated headstrap includes a sizing dial for a more balanced fit on the head.
  • Samsung Notebook 7 Spin (2018) Launched at CES 2018: Specifications, Features

    Samsung Notebook 7 Spin (2018) Launched at CES 2018: Specifications, Features

    You can record lectures and conversations using Voice Note and jot down notes using the S Pen simultaneously. Connectivity-wise, you get 1x USB-C, 1x USB 3.0, 1x USB 2.0, 1x HDMI, and 1x headphone/microphone port.
    Man Calls 911 To Report Himself For Drunk Driving

    Man Calls 911 To Report Himself For Drunk Driving

    He reported himself to the police and told the dispatcher that he was driving drunk, and needed to be pulled over. The Polk County Sheriff's Office posted the 911 call on Facebook using the hashtag "Hello 9-1-1 I'm hammered".
    Packers promote Gutekunst to general manager

    Packers promote Gutekunst to general manager

    He was promoted to director of of college scouting in 2012 and director of player personnel in March of 2016. Dorsey was hired as the Browns' GM last month, and Highsmith left the Packers to join Dorsey last week.
  • JFK woes 'unacceptable — Airport agency head

    JFK woes 'unacceptable — Airport agency head

    More delays have been added Sunday to the storm-related aftermath the already beleaguered airport is working to recover from. QUEENS -JFK is nearly back to normal - and that means long lines, delayed flights and thousands of frustrated passengers.

    Ford F-150 Diesel Revealed: 440 LB-FT Punch, 30 MPG Efficiency

    For now Ford has only one competitor when it comes to the half-ton diesel game, and that's the Ram EcoDiesel. It's the sixth engine choice for F-150 customers. - Customers can order a diesel F-150 starting this month.
    DJI Osmo Mobile 2 packs phone stabilization for $129

    DJI Osmo Mobile 2 packs phone stabilization for $129

    According to DJI, the Ronin-S supports Canon 5D, Panasonic GH and Sony Alpha systems with a wide combinations of lenses. Unlike the first generation, the Osmo Mobile 2 is lighter in construction and comes with fewer screws.
  • Trump contradicts self repeatedly in immigration meeting

    Trump contradicts self repeatedly in immigration meeting

    But lawmakers said that is not likely at Tuesday's meeting as they consider options for resolving the standoff with Trump. Nothing gets done on the budget until the prospect of political damage stares them in the face.
    Lawsuit Alleges Google Managers Booed White Men at Company Meetings

    Lawsuit Alleges Google Managers Booed White Men at Company Meetings

    Google CEO Sundar Pichai condemned parts of Damore's post that he said perpetuated stereotypes about women. These messages refer to him as "repulsive, intellectually dishonest, a misogynist and a bad person".
    Princess Charlotte Photos Show Adorable Tot Off to Nursery School

    Princess Charlotte Photos Show Adorable Tot Off to Nursery School

    In the pictures, the fourth in line to the throne is wearing a coat and scarf and what appears to be a rucksack. The nursery school, founded in 1964, is housed in a church hall just a short walk from Kensington Palace.


Most liked

Honor View 10 AI Launches in UK
Connectivity options include 4G VoLTE, WiFi 802.11 b/g/n, Bluetooth 4.2, GPS, GLONASS, 3.5mm audio jack, and a USB Type-C port. The new Honor View 10 will compete against the likes of OnePlus 5T , Xiaomi Mi MIX 2 and Nokia 8, among others.

First joint Intel and AMD chip revealed
And that premium placement means they're going to go into high-spec laptops which demand an equally high price. Intel and AMD have finally shown us the first product from their partnership which was announced a year ago .

US Supreme Court rejects challenge to MS law curbing LGBT rights
He explained that the court's verdict banning gay sex is not in accordance with "evolving legal jurisprudence". Section 377 has undergone many twists and turns ever since the Delhi High Court decriminalised it in 2009.

Charred body of technician found in Kanjurmarg studio fire
The studio is located at Kajurmarg in Mumbai where two TV serials were being shot- Bepanaah and Haasil- at that time. Similarly, 12 people were killed on December 18 after a fire broke out at a snack shop in Mumbai's Saki Naka area.