Crude oil futures were slightly lower Tuesday morning amid speculation that U.S. production will continue to rise.
OPEC is cutting supplies, but non-OPEC output, particularly from the U.S. shale fields, is set to exceed global demand this year.
“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.
WTI light sweet crude oil was down 30 cents to $58.99 a barrel.