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Iran's Oil Production, Exports Not Impacted By Protests

03 January 2018

The gains indicate that the global glut that has dogged the market since 2014 is shrinking.

Brent Crude futures rose 41c to 66.57 bbl.

Oil prices were up slightly on Thursday as a pipeline outage in Britain continued to lift Brent crude prices.

But while 2018 is shaping up to be a tumultuous year for crude, it could be that the US plays a lesser role in creating chaos than some think: the Federal Reserve Bank of Dallas this week noted in its latest survey of 134 energy firms based in Texas, New Mexico, and Louisiana that prices above $60 per barrel are needed to see a significant uptick in activity. We'll look at that more in Part 3 of this series.

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Global benchmark Brent Crude futures also rose, supported by ongoing supply cuts by top producers OPEC and Russian Federation as well as strong demand from China.

WTI Crude Oil futures hit 60.32, the highest since June 2015.

For the whole of 2017, Russia's average annual oil production increased for a ninth year in a row.

Federal Reserve Bank insists oil must exceed $60 for a boost in US drilling.

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WTI prices were further boosted by an EIA report of a 4.6 million barrel weekly drop in US commercial crude storage levels.

A possible rise in United States oil production may pose a threat to higher oil prices. In the last quarter of 2016, Russia's production had hit a post-Soviet era high, while year over year in 2016, production grew to 10.96 million bpd, from 10.72 million bpd in 2015.

In worldwide markets, China has issued crude oil import quotas totalling 121.32 million tonnes for 44 companies in its first batch of allowances for 2018.

Oil prices have lost ground in the days following last week. If the deal holds until the end of this year, Russia's oil production growth could stall, considering its commitment to the pact.

More news: US Crude Oil Inventories Have Fallen ~10.6% in 2017

Iran's Oil Production, Exports Not Impacted By Protests