Oil prices extended losses on Thursday as rising US crude inventories intensified concerns about market oversupply.
According to data released by the US Energy Information Administration (EIA), stockpiles swelled by a further 4.95 million barrels to 533.1 million barrels.
Oil prices held gains on Friday on data showing US stockpiles rose for a seventh straight week but at a pace that was well below expectations, and news of oil being sold out of storage in Southeast Asia.
It’s been a few weeks since members of OPEC started cutting production.Saudi Arabia said last Wednesday that its production is the lowest it’s been in two years. Iraq said that it had made cuts,as did Kuwait.
Crude oil prices should remain around $50 per barrel during 2017, according to the U.S. Energy Information Administration’s Short-Term Energy Outlook released on Jan. 11.
The United States is projected to become a net energy exporter over the next decade due to rising natural gas exports and falling petroleum product imports, the U.S. Energy Information Administration said on Thursday.
The price of Brent crude oil should rebound in the next year to about $76 a barrel as consumption continues to increase in coming years, a key U.S