Crude Oil continues to churn on rebel attack concerns, WTI roils near $72
NEW YORK (January 16) US Crude Oil roiled on Tuesday, trading into consolidation just above $72.00 per barrel as geopolitical concerns surrounding ongoing Houthi attacks on civilian cargo ships in the Red Sea continues to prop up barrel bids in fearful, uneven market action.
Iran-backed Houthi rebels continue to vow to attack civilian cargo ships heading towards the Suez Canal past the coast of Yemen, and a front-loaded assault by coalition naval forces from the US and the UK has energy traders concerned that Houthi rebels will continue to target ships passing through the key waterway that connects Europe and Asia.
Despite ongoing supply line concerns, US Crude Oil stocks remain well-supplied, and oil derivative pipelines remain healthily full.
US, Canadian production continues to climb into all-time highs
According to the Energy Information Administration (EIA), US Crude oIl production facilities slightly increased net output this week after production from the Permian Basin climbed 5.5K barrels per day to 5.974 million bpd, pushing US Crude Oil output even higher despite slight easing in production from the Eagle Ford production center (down 2K bpd to 1.147 million bpd) and the Bakken oil production facility (down 500 bpd at 1.303 million bpd).
US oil production continues to entirely outpace global production cuts from the Organization of the Petroleum Exporting Countries (OPEC), and North American Crude Oil output is set to climb even further with Canadian oil producers ramping up production as the Trans Mountain pipeline nears completion. According to reporting by The Canadian Press via BNN Bloomberg, Alberta oil output hit a record high in November of 4.2 million barrels per day, an 8.8% increase from the previous month. By comparison, Alberta produced an average of 3.8 million bpd through the first eleven months of 2023.
November’s increase in Canadian Crude Oil production makes Canada the fourth-largest producer of barrels globally.
FXStreet
