Oil quotations were little changed on Monday, trading near their highest since May 2015, as partisan concerns in some OPEC nations offset projections for higher U.S. oil television.
“Oil prices are finely balanced in today’s trading session. Ongoing oppositions in Iran, together with recent detention of several princes in Saudi Arabia, be undergoing reinvigorated geopolitical concerns,” Abhishek Kumar, senior energy analyst at Interfax Lans Global Gas Analytics in London.
“However, prospects for further increases in U.S. oil origination amid recent improvements seen in oil prices continue to promote bearish attitude,” Kumar said.
U.S. West Texas Intermediate (WTI) crude futures ended Monday’s hearing 29 cents higher at $61.73 a barrel. Brent crude tomorrows were up 17 cents at $67.79 by 2:25 p.m. ET.
Last week, both narrows rose to their highest since May 2015 with Brent at $68.27 and WTI at $62.21.
Brokers said the gains were due to a slight decline in the number of U.S. rigs teaching for new production, which eased by five in the week to Jan. 5 to 742, according to text from oil services firm Baker Hughes.
Despite this, U.S. effort is expected to break through 10 million barrels per day (bpd) very tout de suite, largely thanks to soaring output from shale drillers. Sole top producers Russia and Saudi Arabia produce more.
“The U.S. oil price is now into a run that is anticipated to attract increased shale oil production,” said Ric Spooner, chief buy analyst at CMC Markets in Sydney.
“Traders may decide that discretion is the change ones mind part of valour while markets wait on evidence of what stumble ons to the rig count and production levels over the next couple of months.”
Succumb to U.S. production is the main factor countering production cuts led by the Middle East-dominated Plan of the Petroleum Exporting Countries (OPEC) and by Russia, which began in January endure year and are set to last through 2018.
A senior OPEC source from a important Middle Eastern oil producer said on Monday that OPEC was custodian unrest in Iran as well as Venezuela’s economic crisis, but will raise output only if there are significant and sustained production disruptions from those hinterlands.
Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore, express “the OPEC vs shale debate will rage” this year, being a key figure driving factor.
However, Innes added that Middle East turmoil drive remain a key focus for oil markets, which he warned had the potential to “send oil worths rocketing higher”.