By: Mahmoud Gamal
Mubasher: Oil prices rose during Tuesday’s trades, after the International Energy Agency (IEA) forecasted a drop in shale oil production in the US within the coming months, preceded by an over saturated market for years.
Benchmark Brent crude jumped 39 cents or 0.76% to $51.91 per barrel (pb) by 6:36 GMT, while West Texas Intermediate (WTI) added 39 cents or 0.78% to $50.33 pb.
IEA forecasts pushed sovereign wealth funds to buy, and losing traders to make up some of their losses, pushing prices higher, commodity markets analyst, Ahmed Hassan Karam, told Mubasher.
Oil markets shrugged off news that Iran, Libya and Nigeria were trying to increase their production, he added.
In its most recent report, the Energy Information Administration (EIA) predicted a decline in shale oil production from seven key US fields by 30,000 barrels per day to 4.429 million barrels per day in November, compared to October’s figures.
Translated by: AbdelRahman Mamdouh
