Adversitement
Crude Oil Futures Rise Amid Steady US Production Expectations
Published On : 2024-02-07T11:35:06+0530 [ IST ] |
Author : Mayur_Tembhare
Home
Industry
Business and Finance
Crude Oil in Hands
United States :
Crude oil futures registered an upward trajectory on Wednesday morning as market optimism prevailed amidst expectations of steady crude oil production in the United States.
At 9:54 am, April Brent oil futures stood at $78.75, up by 0.20 per cent, while March crude oil futures on WTI (West Texas Intermediate) were at $73.52, reflecting a gain of 0.29 per cent.
On the Multi Commodity Exchange (MCX), February crude oil futures were trading at ₹6113, showing an increase of 0.48 per cent from the previous close, with March futures trading at ₹6138, up by 0.41 per cent.
The energy-information-administration" target="_blank">Energy Information Administration (EIA) reported that US crude oil production reached an all-time high in December, surpassing 13.3 million barrels a day. However, production dipped to 12.6 million barrels a day in January due to weather-related shut-ins. The EIA forecasts a return to nearly 13.3 million barrels a day in February, albeit with a slight decrease thereafter, not surpassing the December 2023 record until February 2025.
Despite concerns over global oil shipments amidst heightened tensions in the Middle East, with attacks on vessels in the Red Sea, Brent crude oil spot prices rose in January, averaging $80 a barrel.
The market eagerly awaits the release of the weekly petroleum status report by the EIA to gain insights into crude oil inventories in the US. Data from the American Petroleum Institute (API) showed an increase in crude oil inventories, though below market expectations.
Amidst these developments, US Secretary of State Antony Blinken's scheduled visit to Israel to discuss a potential ceasefire with Hamas adds geopolitical dimension to market sentiments.
Commodity prices responded differently to market dynamics, with February natural gas futures and agricultural commodities such as dhaniya and turmeric displaying varying trends on commodity exchanges.
As crude oil prices reflect a delicate balance of production, geopolitical tensions, and market demand, investors remain vigilant for further developments that could influence oil market dynamics in the near term.
Source : energy-information-administration" target="_blank">Energy Information Administration
Tags : Energy Information Administration , petroleum status report , Middle East tensions , US production , commodity prices , market outlook , Israel , global oil shipments , Brent oil , Hamas , American Petroleum Institute , WTI , crude oil futures , Antony Blinken ,
Summary : Crude oil futures experienced an upward trend as the United States anticipates stable crude oil production throughout the year. Prices for April Brent oil futures and March crude oil futures on WTI (West Texas Intermediate) saw modest gains, reflecting market sentiments amidst forecasts of consistent output from the US. The energy-information-administration" target="_blank">Energy Information Administration (EIA) reported record high production levels in December, but disruptions due to inclement weather led to a temporary decline in January. However, production is expected to rebound close to previous highs in the coming months, influencing market dynamics.
Adversitement