Oil climbs past resistance as U.S. shale boss says output to peak
BNN Bloomberg
Oil broke above its 100-day moving average as a shale executive in Houston projected America’s most prolific basin will soon peak, though China’s tempered economic forecast limited crude’s upside.
The key technical level was breached for the first time in four months with lackluster supply expectations from the U.S. Oil production in the Permian Basin will peak in five to six years, Pioneer Chief Executive Office Scott Sheffield told Bloomberg TV Monday at CERAWeek by S&P Global.
“Crude is breaking out of its recent trading range on what started out as a bearish day on the heels of China’s 5 per cent GDP target,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Oil was pressured by China’s latest economic growth goal that was lower than economists projected, suggesting that a boost in the nation’s crude consumption will be smaller than the bulls had hoped for. Meanwhile, Gunvor Group’s CEO noted that so far the trading house isn’t seeing any major disruption to Russia’s flows for the upcoming month.
