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| Commodity News |
| HeadLine : |
Oil Steady Near $52 With IEA Signaling Possible U.S. Shale Boost |
| Date : |
Jan 12 2021 |
Oil was steady in early Asian trading with the International Energy Agency saying a “big chunk” of U.S. shale is profitable at current prices, signaling a possible output increase. Futures traded near $52 a barrel after closing little changed on Monday. Many producers will be able to boost production and U.S. shale will be needed to fill the gap in the oil balance in the short term, IEA Director Fatih Birol said in a Bloomberg television interview. American crude stockpiles, however, remain at the highest seasonal level in decades after Covid-19 crushed demand. Crude has paused after rallying to the highest level since February, with a stronger dollar reducing the appeal of commodities priced in the currency and a technical indicator signaling oil is overbought and due for a correction. Oil has surged more than 45% since the end of October after Covid-19 vaccine breakthroughs, with Saudi Arabia’s pledge to deepen output cuts over the next two months adding impetus to the rally. The rollout of coronavirus shots is still expected to take some time and the spreading outbreak is raising concerns a sustained rebound in demand won’t take place until later in the year.
Source: Investing.com
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