Crude oil futures were steady Tuesday, but unable to recoup recent losses. Analysts point to a surge in U.S. shale oil production as the cause of oil’s retreat from 4-year highs above $66.
WTI light sweet oil for March was down 0.2% at $59.19/bbl.
“For now, the upward momentum that drove the price of Brent crude oil to $70/bbl has stalled; partly due to investors taking profits, but also as part of the corrections we have seen recently in many markets. Most importantly, the underlying oil market fundamentals in the early part of 2018 look less supportive for prices,” said the IEA.
“By the end of this year, the U.S. might also overtake Russia to become the global leader. All the indicators that suggest continued fast growth in the US are in perfect alignment; rising prices leading, after a few months, to more drilling, more completions, more production, and more hedging,” the IEA said.