30-Nov-2024 14:40

WTI Crude oil futures stayed mostly under stress as highs around $70 per barrel capped gains amid firm US dollar index. The counter ended around $68 per barrel, testing two week low as traders awaited the OPEC+ meeting, with expectations that the group may postpone January's planned output hike due to oversupply concerns. Geopolitical focus shifted to the Middle East, where a ceasefire between Israel and Hezbollah eased tensions, though uncertainty persists following strong remarks by Israeli PM Netanyahu. The EIA reported a 1.8M barrel drop in US crude inventories last week, offset by a 3.3M barrel rise in gasoline stocks. However, broad gains could still remain elusive for the oil prices given elevated US crude oil output. EIA noted in a latest update that an average of 13.4 million barrels per day (b/d) of crude oil was produced in the United States during August 2024, a new record. More crude oil was produced in the United States during August 2024 than during December 2023, when the previous monthly record of 13.3 million b/d was set. In the first eight months of 2024, average monthly U.S. crude oil production only fell below 13.0 million b/d once, in January. For the full year of 2024, EIA has forecast U.S. crude oil production will average 13.2 million b/d. That volume would be more than the 2023 annual average of 12.9 million b/d, which is the current annual production record. In 2025, EIA forecasts U.S. crude oil production will average 13.5 million b/d.

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