Crude Oil Falls 1% On Concerns Of Economic Slowdown, Oversupply-
For the year, WTI futures slumped nearly 25 per cent, while Brent tumbled nearly 20 per cent.
The outlook for 2019 is riddled with uncertainty, analysts said, including the US-China trade concerns and Brexit, as well as political instability and conflict in the Middle East.
A Reuters poll showed oil prices are expected to trade below $70 per barrel in 2019 as surplus production, much of it from the United States, and slowing economic growth undermine efforts led by the Organisation of the Petroleum Exporting Countries (OPEC) to cut supply and prop up prices.
On the production side, all eyes will be on the ongoing surge in US output and on OPEC’s and Russia’s supply discipline.
“Don’t underestimate shale producers and the wider US oil industry in general. Too often this year the market pushed stories…bottlenecks (pipelines, frack crews, truck drivers, etc.), yet US oil production will have grown by a massive 2+ million barrels per day between 1.1.2018 and 1.1.2019,” consultancy JBC Energy said in an analysis of 2018.
US crude output rose to an all-time high of 11.537 million barrels per day (bpd) in October, the Energy Information Administration (EIA) said on Monday. That makes the US the world’s biggest oil producer ahead of Russia and Saudi Arabia.