Published on 14 Mar 2024 on Zacks via Yahoo Finance
Healthy Crude Oil Prices Fuel Upstream Sector Expansion
The global oil market is currently experiencing an uptick, with brent crude prices hovering above the $84-per-barrel mark, a slight increase of 0.8% from the last trading session. The West Texas Intermediate (WTI) crude also witnessed a 0.9% rise, trading above the $80-per-barrel threshold. This upward trend in oil prices is fostering a bullish atmosphere, paving the way for heightened exploration and production activities, particularly in lucrative shale reserves.
Oil Price Still Remains High
At present, the WTI crude price is trading above $80 per barrel, which is deemed highly beneficial for the exploration and production sector. The U.S. Energy Information Administration’s (“EIA”) short-term energy outlook remains optimistic, projecting an average spot price of $82.15 per barrel for WTI crude for 2024. The current dynamics in the global oil market, characterized by rising prices, robust demand and constrained supply, are setting the stage for an expansion in the upstream sector.