NYMEX crude continues to trade in a narrow range near $57 per barrel amid mixed cues and this trend may persist in the near term.
Supporting crude is supply outage in North Sea as the Forties pipeline remain closed since Dec.11. Reports however noted that the leak has not widened and the repairs may be completed soon.
Supply worries rose yesterday as Nigerian oil union called for strike however the strike was called off same day.
Crude has also benefitted from OPEC's decision to extend production cut by another nine months upto Dec.2018. However, concerns persist about higher Libyan and Nigerian supply.
Also supporting crude is continuing gains in US equity market. US equity market is at record high level on progress over tax reforms.
However, weighing on price is record high US crude production. US weekly crude production is at record high level. US EIA, OPEC, and International Energy Agency last week raised outlook for US production and non-OPEC supply