Oil prices gained on Tuesday driven by robust demand forecasts following a meeting at the weekly conference of CERA in Houston.
Brent crude futures gained 0.12 percent, up 8 cents to $65.67 a barrel.
U.S. West Texas Intermediate crude futures rose 0.18 percent, up 11 cents to $62.68 a barrel.
Global Demand on the Rise
At the weekly meeting in Houston, comments from ministers of OPEC and the International Energy Agency said that they expected global oil demand for oil over the next five years is expected to increase. Secretary General of OPEC, Mohammed Barkindo said that the agreement to cut output with global producers were ‘solid’. His comment reinforces the IEA commitments that output will rise at a slower pace. With the gap between OPEC and global demand the U.S. is expected to fill the gap as its shale production rises.
U.S. Shale Production
According to the U.S. Energy Department, U.S. shale production has overtaken Saudi Arabia, the top exporter with production at over 10 million barrels per day (bpd). In November 2017 it hit a record of 10.057 million bpd.
Expectations, according to a poll is that U.S. crude inventories will rise by 3 million barrels through to March 2nd. Investors are waiting for the release of the American Petroleum Institute and the U.S. Energy Department’s Energy Information Administration report with inventory data due to be released on Wednesday.
Brent crude price forecast for 2018 has been revised at BMI Research due to the strong support and escalating market demand to upward $67 a barrel.
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