Gerard Izuora
Oil prices extended gains on Tuesday for the fifth straight day, underpinned by robust demand forecasts and prospects for informal contacts sought by the Organization of Petroleum Exporting Countries, OPEC with U.S. shale oil producers at a key industry meeting in Houston this week.
International benchmark Brent crude futures climbed to $65.73 per barrel gaining 19 cents, or 0.29 percent while the U.S. West Texas Intermediate, WTI crude futures advanced to $62.74 a barrel, up 17 cents, or 0.27 percent.
The IEA said on Monday global oil demand was expected to grow in the next five years, while output from producers in the Organization of the Petroleum Exporting Countries (OPEC) would rise at a much slower pace.
The IEA said the United States would supply much of the world’s growing oil demand over the same period as its shale oil production was set to surge. U.S. crude production has risen to more than 10 million barrels per day (bpd), overtaking top exporter Saudi Arabia. Output hit a record 10.057 million bpd in November, according to the U.S. Energy Department.
Meanwhile, OPEC oil ministers, U.S. shale oil producers and other global oil industry leaders gathered in Houston as CERAWeek, the largest energy industry get-together, kicked off on Monday.
The gathering comes against the backdrop of an extension in output cuts led by OPEC, along with other oil producers including Russia, in a bid to absorb a global oil glut and boost prices.
Higher U.S. oil production has hampered OPEC’s drive to reduce global supply, however.
Elsewhere, Libya’s El Sharara oil field resumed operations on Monday. The field, operated by Libya’s National Oil Corporation, NOC, was shut down on Sunday after a landowner closed a valve on a pipeline crossing his land.