Anticipation of gains in U.S. crude oil production and long-term forecasts for an energy market shift sent crude oil prices lower in early Wednesday trading.

"We are seeing growing competition between different energy sources, driven by abundant energy supplies, and continued improvements in energy efficiency," Spencer Dale, a chief economist at BP, said in a statement marking the company's much-lauded annual review. "As the world learns to do more with less, demand for energy will be met by the most diverse fuels mix we have ever seen."

Crude oil prices topped $70 per barrel in January on expectations that global economic momentum would translate to robust demand for petroleum products. BP's review found demand accelerates, but begins to peak mid-century and renewables become the fastest-growing fuel source.

U.S. crude oil production, meanwhile, has added to supply-side concerns now that it's been holding steady at about 10 million barrels per day. Last week, federal data show the cumulative average for crude oil production to Feb. 9 was 11 percent higher than the same period last year.

Petroleum product inventories have been building consistently for much of February. Total U.S. commercial inventories are on the lower end of average for this time of year, but motor gasoline is at the upper range. New federal data are published Thursday, delayed one day by the federal holiday Monday in the United States.

The price for Brent crude oil, the global benchmark for the price of oil, was down 0.46 percent as of 9:18 a.m. EST to $64.95 per barrel. West Texas Intermediate, the U.S. benchmark, was down 0.91 percent to $61.23 per barrel.

Crude oil prices have been moving higher in general since the middle of last year, lending support to industry activity in the exploration and production side of the sector.

Rig company Transocean, however, said it was still coping with a weaker market condition and, while optimistic about the recovery so far, demand for some of its services in the deepwater sector were "not as strong."

Ole Hanson, the head of commodity strategy at Saxo Bank, told UPI the price for oil may be stuck in a bit of a range as it seeks momentum.

"I believe we have found the ceiling but still need confirmation that a bottom has been established," he said.

Elsewhere, Austrian energy company OMV returned to profit in the fourth quarter, though sales revenue was somewhat lower than the same period last year. On the price of oil, the company said it was anticipating an average price for Brent at $60 per barrel for 2018.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Iran, India shake hands on energy
Washington (UPI) Feb 19, 2018
After signing a handful of agreements in India, Iranian President Hassan Rouhani said his country was ready to meet the country's energy needs. The Iranian president led a delegation to India last week, rounding up his visit by signing around a dozen memoranda of understanding. A joint statement from a meeting between Rouhani and Indian Prime Minister Narendra Modi outlined "long-term" partnerships and a desire to reach "appropriate results on energy cooperation." India has long been on ... read more