At these prices, shale oil production becomes more economical in more areas. That was also close to the previous day's high of $69.37 a barrel, which was the highest level since an intra-day spike in May 2015 and, before that, in December 2014. China's crude imports in December fell 9 percent month-on-month to 33.7 million tonnes, or 7.97 million bpd, customs data showed.
Expectations of another drain on US crude oil inventories supported a soft increase in oil prices early Tuesday, though a reversal may be overdue. As a result, pipeline capacity constraints should not be a major limiting factor in starting new production, he said.
EIA estimates that OPEC countries cut crude oil production output in 2017, but those cuts were offset by increased production in non-OPEC countries, especially the United States and Canada, EIA Acting Administrator John Conti said in a January 9 statement. West Texas Intermediate, the USA benchmark, has been trading over $60 per barrel for several weeks now.
The Energy Information Administration (EIA) recently unveiled its Short-Term Energy Outlook, which is forecasting the price of crude oil to rise about 13 percent or $7/barrel by 2019.
US demand growth of 150,000 bpd was estimated for 2017, slightly lower than previous expectations. In particular, USA crude oil production is expected to increase more quickly than any other country.
Production was expected to hit 10.04 million bpd during the first quarter of this year, the agency said in a monthly report. Regional summer price spikes can not be precisely predicted.The agency expects gasoline demand in 2018 to total about 9.3 million barrels a day this year, a level that would surpass all-time records set last year.
Profit Taking Eats At Crude Oil Gains
US output will continue to rise in 2019, surpassing 11 million bpd by the end of that year, the EIA report said.
EIA expects OPEC crude oil output will rise by an additional 0.3 MMBPD in 2019 as crude oil production slowly returns to pre-agreement levels. The EIA says it will account for two thirds, or 800,000 b/d of the 1.2 mb/d of oil production growth expected between December 2017 to December 2019.
Global consumption of petroleum and other liquid fuels grew by 1.4 million b/d in 2017, reaching an average of 98.4 million b/d for the year.
But the USA refining sector is running near capacity, turning oil into a growing supply of gasoline, diesel and heating oil.
As Asian demand for crude oil and petroleum products increase, supply considerations to transport crude oil to Asia are increasingly part of the price formation for global crude oil benchmarks.
Overall, dry natural gas production averaged 73.6 billion cubic feet per day in 2017, up 1 percent from 2016.