Oil extends gains on IEA growth forecasts, hopes for OPEC-U.S. shale producer talks
Commodity Alert: Oil extends gains on IEA growth forecasts, hopes for OPEC-U.S. shale producer talks
Oil prices extended gains on Tuesday for the fifth straight day, underpinned by robust demand forecasts and prospects for informal contacts sought by OPEC with U.S. shale oil producers at a key industry meeting in Houston this week. The International Energy Agency (IEA) said on Monday global oil demand was expected to grow in the next five years, while output from producers in the Organization of the Petroleum Exporting Countries (OPEC) would rise at a much slower pace.
The IEA said the United States would supply much of the world's growing oil demand over the same period as its shale oil production was set to surge. U.S. crude production has risen to more than 10 million barrels per day (bpd), overtaking top exporter Saudi Arabia. Output hit a record 10.057 million bpd in November, according to the U.S. Energy Department.
Meanwhile, OPEC oil ministers, U.S. shale oil producers and other global oil industry leaders gathered in Houston as CERAWeek, the largest energy industry get-together, kicked off on Monday.
Source : Investing