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Crude Oil Prices Continue to Rally, Up More Than 10% in 2017

Published 29/12/2017, 15:26
© Reuters.  Oil prices continue to rally after surprise drop in U.S. output
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Investing.com - Crude prices continued a year-long rally on Friday thanks to a surprise drop in U.S. output ahead of weekly oil rig data and as gains for 2017 were on track to comfortably top a 10% rise.

The U.S. West Texas Intermediate crude February contract advanced 24 cents, or 0.40%, to $60.08 a barrel by 10:24AM ET (15:24GMT) Thursday.

Elsewhere, Brent oil for March delivery on the ICE Futures Exchange in London traded up 28 cents, or 0.42%, to $66.44 a barrel.

Oil prices continued to march higher on Friday as the U.S. benchmark rose eight out of the last nine sessions.

U.S. oil production surprisingly dropped to 9.754 million barrels per day (bpd), down from 9.789 million bpd the previous week, according to data from the Energy Information Administration (EIA) released late on Thursday.

U.S. crude output has risen by around 16% since mid-2016, but analysts had forecast it to surpass 10 million bpd by the end of 2017.

Adding to bullish sentiment earlier on Thursday, oil stockpiles stateside fell by a more-than-expected 4.6 million barrels, helping to support bullish sentiment in black gold.

In a bullish year for black gold, the U.S. benchmark was last on track for annual gains of nearly 12% while the London barrel was up close to 17% in 2017.

U.S. shale production will be a focus looking ahead to 2018 as market participants evaluate whether increased production in the U.S. will derail OPEC attempts to curb output and rebalance global markets.

In that light, investors will also get their latest glimpse of U.S. output when Baker releases its most recent weekly rig count data.

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