Mubasher: Oil prices declined by the end of Tuesday’s trade, for the first time in four sessions, after reaching its highest level in two and a half years, amid expectations of a higher US shale oil production.
Nymex futures went down 0.3% to $57.2 per barrel, maintaining its level above the highest prices seen since June 2015, after recording highest daily rise in around a year yesterday, while Brent futures fell 0.9% to $63.72 per barrel.
A new report by the Organization of the Petroleum Exporting Countries (OPEC) said that US shale oil production is rising in the a pace exceeding expectations for the upcoming four years, in what could put more pressure on crude prices, amidst concerns of a market oversupply.
OPEC Secretary General Mohammed Barkindo said that producers are discussing extending the output cut agreement beyond March 2018.
Morgan Stanley said in a recent report that it expects oil Brent to reach $62 in the fourth quarter of 2017, raising its forecasts from a previous level of $55 per barrel.