Week Ahead: Notes from Fed to boost dollar
Crude oil is flat in a volatile week that saw the price of crude move in a 1.17% range. The price of West Texas is trading at $53.15 per barrel as the results of the production cut by OPEC members are being cancelled by rising U.S. shale production. 72 rigs have been added in 2017 as the price of crude remains over $50. There were doubts surrounding the deal between OPEC members and 11 other oil producing nations, but so far there has been compliance. The lack of a massive price surge has OPEC contemplating an extension to the original 6-month duration of the agreement.
The boom in shale oil activity in the United States is a direct result of stable prices and a more industry friendly administration. The biggest challenge still facing oil prices is global demand that continues to be weak despite optimistic forecasts from OPEC and the U.S. EIA that show an improvement in energy demand.