Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Alan Rice
Jun 18, 2021 12:18PM ET
Crude Target : $350/bbl/2024. Tic-toc.
1
0
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details
Oil gains on OPEC outlook that U.S. output growth will slow
© Reuters. FILE PHOTO: A crude oil tanker is seen at Qingdao Port, Shandong province, China, April 21, 2019. REUTERS/Jason Lee//File Photo
By Jessica Resnick-Ault
NEW YORK (Reuters) -Oil futures rose on Friday, reversing early losses and set for a fourth week of gains after OPEC sources said the producer group expected limited U.S. oil output growth this year despite rising prices.
Officials at the Organization of the Petroleum Exporting Countries got the U.S. production outlook from industry experts, OPEC sources said. This would give the producer group more power to manage the market before a potential surge in shale output in 2022.
Brent crude futures rose 43 cents, or 0.6% to settle at $73.51 a barrel. U.S. West Texas Intermediate (WTI) crude rose 60 cents, or 0.8% to $71.64 a barrel.
Both benchmarks were headed for a weekly gain of about 1.1%.
"Oil markets are rallying because OPEC is skeptical that the increase in U.S. oil production is going to be enough to change their plans to support prices," said Phil Flynn, senior analyst at Price Futures Group in Chicago.
On Wednesday, Brent settled at its highest price since April 2019 and WTI closed at its highest since October 2018. Gains were capped by lingering concerns about the pandemic and a stronger U.S. dollar, which makes oil more expensive in other currencies.
Sources told Reuters that on Tuesday, officials from OPEC's Economic Commission Board (ECB) and external presenters attended a meeting focused on U.S. output. OPEC heard from more forecasters on the outlook for 2021 and 2022 at a separate meeting on Thursday.
While there was general agreement on limited U.S. supply growth this year, an industry source said for 2022 forecasts ranged from growth of between 500,000 and 1.3 million barrels per day.
"The general sentiment regarding shale was it will come back as prices go up but not super fast," said a source at one of the companies that provided forecasts to OPEC.
Higher oil prices have spurred some U.S. energy firms back to the well pad. The oil rig count, an early indicator of future output, rose eight this week to 373, the highest since April 2020, according to energy services firm Baker Hughes Co. [RIG/U]
On Thursday, Iran's top negotiator indicated an agreement was close in talks between Tehran and Washington on reviving the 2015 Iran nuclear deal. This added to pressure on prices.
Related Articles
Russian oil pipeline flows resume after Hungary's MOL settles transit bill
By Reuters - Aug 10, 2022
By Gergely Szakacs and Jan Lopatka BUDAPEST (Reuters) - Russian oil pipeline flows resumed to Central Europe on Wednesday, ending a six-day halt, after Hungarian group MOL paid...
Oil drops on Druzhba pipeline restart, jump in U.S. stocks
By Reuters - Aug 10, 2022
6
By David Gaffen NEW YORK (Reuters) -Oil prices fell on Wednesday as flows on the Russia-to-Europe Druzhba pipeline resumed and after U.S. crude stocks rose far more than...
U.S. Weekly Crude Stocks Jump Nearly 5.5Mln Barrels, Gasoline Down Almost as Much
By Investing.com - Aug 10, 2022
7
By Barani Krishnan Investing.com -- U.S. crude oil inventories jumped by almost 5.5 million barrels last week, the Energy Information Administration, or EIA, announced on...
Comments (2)
Denis Costelloe
Jun 18, 2021 1:46AM ET
The crude oil price will not hold at $70 nevermind above it for much longer because the market trend has turned downward.Unless the dollar rate settles and the Fed makes a more immediate and definite interest rate hike to curb rising inflation!
4
4
Joel Schwartz
Jun 18, 2021 1:46AM ET
Maybe oil prices should reflect actual demand, not OPEC tricks and artificial FED liquidity. Wild, I know.
3
0
Steffen vdm
Jun 18, 2021 1:46AM ET
Perhaps, if unit development cost and unit operating cost would be stable. If they go up, prices will go up
0
0
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.