7/12/2016, 7:11 PM (Source: TeleTrader)
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Oil surges over 4% after EIA report

Oil prices surged over 4% after the United States Energy Information Administration (EIA) raised its forecast for West Texas Intermediate and Brent crude oil prices for 2016 and 2017.

Futures for West Texas Intermediate for August delivery rose 4.03% to $46.64 a barrel and futures for Brent with delivery in September were 4.18% higher at $48.27 a barrel at ICE Futures Europe at 6:56 p.m. CET.

In its report published on Tuesday, the EIA provided forecast of average price at $43.57 a barrel for the U.S. light sweet crude in 2016, with previous forecast at $42.83.

Premium international blend Brent is seen to reach an average price of $43.73 a barrel in 2016, versus previous forecast of $43.03.

Projection for both benchmark crude oil types is set at $52.15 a barrel.

Crude oil production in the United States of America would be 8.6 million barrels per day this year and would fall to around 8.2 million barrels per day in 2017.

Earlier on Tuesday, the Organization of the Petroleum Exporting Countries published its OPEC daily basket price of 14 crudes at $42.21 a barrel on Monday, compared with $42.59 a barrel on Friday.

Baha Breaking News (BBN) / ZR