|Oil prices start off where they finished last year - upwards|
|By A/S Global Risk Management.
|Updated on 02 Jan 2018 08:39 GMT
|Brent oil price has climbed around $4 compared to a month ago and now seems heading towards $70.
The number of active oil rigs in the U.S. was reported to be unchanged according to Baker Hughes report of last week. It is the third week in a row with no changes. The weekly oil inventory report from the Energy Information Administration (EIA), published on Thursday, showed a huge draw in crude oil inventories and oil production dropped to 9.754 mio. barrels per day, from 9.789 mio. barrels per day the week before. The next oil inventory report from the EIA will be published on Thursday this week due to the holiday.
The geopolitical risk premium increases as news of increasing unrest in Iran emerged with anti-government protests. Iran is one of the largest oil producers in OPEC with a production just shy of 4 mio. barrels per day and any risk of production disruptions support oil prices.
The Forties pipeline, supplying the UK with North Sea oil, has been restarted and returned to full operations just before the New Year.
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