WTI crude prices rose close to its highest price in two month as the economy world’s largest oil consumer is showing signs of stability and growth.
West Texas Intermediate for February delivery came in $99.01 per barrel on the New York Mercantile Exchange, 31 cents lower at the time of writing. The contract rose to the highest close on December 20 since Oct 18, rising 28 cents to $99.32.
While the European benchmark Brent crude dropped 7 cents lower to $111.70 a barrel on the ICE Futures Europe exchange. Brent crude was at $12.69 premium to WTI.
WTI Crude – US Economy
The International Money Fund (IMF) is increasing its outlook for the world’s largest economy, following the Federal Reserve’s (Fed) decision to start tapering its monthly asset purchases and the recent budget agreement that was finalized in Washington, Managing Director Christine Lagarde said in an interview with NBC.
Analysts were surprised by the reported third-quarter GDP, showing an advance of 4.1% at an annual pace, surpassing analysts’ prediction of a 3.6% rise. The second-quarter data remained unrevised at 2.5%, reports from the Department of Commerce confirmed on December 20. According to predictions from the International Energy Agency, the US is expected to account for approximately 21% of global oil demand this year.
The Organization of Petroleum Exporting Countries (OPEC), which supplies approximately 40% of the world’s crude, for the rejected a proposal of the possibility of a glut in global crude supply next year, according to ministers from Saudi Arabia, Kuwait and Iraq.
WTI Crude – Libya
Meanwhile in Libya, the country holds the largest crude reserves in Africa and may to force to reopen exports terminals which have been closed by protesters if necessary, according to oil & gas Minister Abdulbari al-Arusi. Libya is producing 250,000 barrels a day, down from 1.43 million barrels a day in Dec 2012, according to estimates.
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