NYMEX crude eased a bit Friday but continues to trade in a narrow range near $58 per barrel. Crude eased today as supply concerns eased amid reports of restart of North Sea pipeline.
The Forties oil pipeline in North Sea was shut on Dec.11 due to leakage issues. Pipeline operator Ineos Thursday noted that the pipeline may be restarted in early January.
Also weighing on crude is stability in US dollar. The US dollar index inched up on optimism about US economy and political concerns in Spain.
Also weighing on crude is higher US production. US weekly crude production has hit a fresh record high level of 9.789 million barrels per day. US crude oil stocks have however declined to the lowest level since Oct.2015 due to higher refinery demand.
Also supporting crude are reports of higher compliance by OPEC and non-OPEC members. Kuwait Oil Minister said that OPEC and non-OPEC compliance with global output cuts reached 122% in November