Crude oil prices recovered lost ground in early Monday trading on expectations of strong global demand and a rebound in global stock markets.

Crude oil prices wiped out all of their yearly gains in the span of a few trading sessions in February as inflationary fears pushed investors into safe-haven assets and out of the stock market. U.S. markets posted record-setting declines last week, but by Monday the situation had eased somewhat.

China's benchmark Shanghai Composite Index closed the day up 0.78 percent. Economists at the Organization of Petroleum Exporting Countries said the string of losses for crude oil prices was triggered by volatility in the global equity market and stronger-than-expected growth in U.S. crude oil production.

U.S. oil production, at just above 10 million barrels per day, is higher than that of Saudi Arabia, the de facto leader of OPEC.

Higher production would normally send crude oil prices lower, as U.S. production gains have offset OPEC's effort to balance the market with coordinated production cuts, an effort now in its second year.

In its monthly market report for February, OPEC said it revised its global growth forecast higher by 0.1 percent for a gain of 3.8 percent in global gross domestic product. The United States is expected to grow at 2.8 percent this year, while China expands by 6.5 percent. India tops the list of major economies, meanwhile, with a GDP growth rate of 7.2 percent expected this year.

Global oil demand was revised higher by 60,000 barrels per day from January.

Both major indices for crude oil were up by more than 1 percent in overnight trading, but have cooled somewhat ahead of the opening bell. The price for Brent crude oil, the global benchmark, was up 0.94 percent as of 9:15 a.m. EST to $63.38 per barrel. West Texas Intermediate, the U.S. benchmark for the price of oil, was up 1.11 percent to $59.86 per barrel.

Further ahead, OPEC said total U.S. crude oil production, while accelerating on the back of gains in crude oil prices since last year, could taper off or even stall out in the second half of 2018, diminishing some of the supply-side pressures so far this year.

Suhail al-Mazrouei, the Emirati energy minister and OPEC president, told Bloomberg News that shale oil wouldn't be a threat to market.

"Shale is coming and the expectation is that it will come stronger than in 2017 and this is something that we have to watch," he was quoted as saying. "But considering all factors, I don't think it will be a huge distorter of the market."

Secondary sources reporting to OPEC economists said total member state production for January was below a self-imposed ceiling and, at 32.3 million barrels per day, is experiencing a 10,000 barrel-per-day drop from December.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Iraq asks BP to study developing Kirkuk oilfields
Baghdad (AFP) Feb 11, 2018
Iraq has asked British energy giant BP to help bolster production at oilfields recaptured from the Kurds in northern Kirkuk province, Oil Minister Jabbar al-Luaybi said Sunday. Luaybi told AFP he wanted to discuss a request for BP to draft a study on increasing output when the company's boss visits Kirkuk in the coming days. "I suggested they study my proposal and I am waiting for their reply," Luaybi said. BP is the biggest foreign player in Iraq's oil sector, running the Rumaila field in t ... read more