Posted On 11 Jan 2017
The future of oil is so uncertain that even the agreement of the countries of the Organization of Exporting Countries (OPEC) seems to be able to stabilize rising prices. Moreover, the alerts sound again on the New York Stock Exchange, fearing that the OPEC will not be able to maintain its commitment to cut production this year.
The United States Energy Information Administration expects the country’s oil output to rise by 300,000 barrels per day (BPD) in 2018 on a year-on-year basis, according to its monthly forecast released yesterday.
The EIA stated that production will rise to 9.3 million BPD next year from 9 million BPD by 2017.
The effect of this is that the price of Texas Intermediate Oil (WTI) fell yesterday by 2.19% and closed at $ 50.82 a barrel, its lowest level in more than a month. WTI future contracts for February delivery fell by $ 1.14 compared to the end of the last session.
The so-called ‘black gold’ yesterday accumulated its second day of heavy losses in New York and ended at its lowest level since December 7.