Oil prices have fallen to their lowest levels since the beginning of the year following a forecast from the IEA (International Energy Agency) stating that US crude production is expected to pass Saudi Arabia’s production and possibly even Russia’s as the leader in global crude production. Experts believe that this increase in production will eventually overshadow global demand, hampering OPEC’s plan to curb output through 2018. US. Shale crude-oil production is the main contributor towards this increase in global oil production and is expected to increase by 110,000 barrels a day in March to 6.756 million bpd. The bulk of this output is poised to come from the Permian Basin which encompasses parts of Western Texas and Southeastern New Mexico where shale production will increase to 75,000 bdp. If this production continues to rise at this rate we could very well be approaching another supply glut which is currently instilling concerns into the market. We await to see the API stats released later today and tomorrow’s EIA production report to get a better understanding of which direction the market will be heading. WTI for March delivery is up 0.12% today to $59.37, RBOB is up 0.74% to $1.68 a gallon, and Heating Oil is trading up 0.11% to 1.841 a gallon.
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