Rising U.S. output pulls oil prices back from session highs
Oil prices eased back from session highs on Thursday after the International Energy Agency increased its forecast for U.S. oil output growth in 2018, raising the prospect of excess supply.
The IEA raised its U.S. crude output growth forecast for 2018, saying it would climb by 870,000 barrels per day (bpd) compared with its November forecast of 790,000 bpd.
With cash pouring into the U.S. shale oil industry, the United States is on track to deliver up to 80 percent of the world’s oil production gains through 2025, the IEA estimates.
OPEC revised its estimate for U.S. oil output growth for 2018 to 1.05 million bpd, while the U.S. Energy Information Administration increased its growth forecast to 780,000 bpd.
The IEA expects the oil market to have a surplus of 200,000 bpd in the first half of next year before reverting to a deficit of about 200,000 bpd in the second half. This would mean 2018 overall would show “a closely balanced market”.
more detail at: https://www.reuters.com/article/us-global-oil/rising-u-s-output-pulls-oil-prices-back-from-session-highs-idUSKBN1E805N