Oil prices slightly up despite bearish outlook for 2018

Oil prices rose on Monday despite reports of a potential surplus in Oil supplies during 2018. The IEA set a bearish future of prices in 2018 after citing rise in output as a result of ample supplies from OPEC and non-OPEC members.

U.S. West Texas Intermediate (WTI) crude futures were at $57.39 a barrel at 0447 GMT, up 9 cents or 0.2 percent from their last settlement.

Brent crude futures, the international benchmark for oil prices, were at $63.37 a barrel, up 14 cents or 0.2 percent from their last close.

Traders were of the opinion that prices on Monday rose on the back of the Forties pipeline shutdown. The reason being a hairline crack in the pipeline in North Sea, with management of the pipeline warning markets of a shutdown that might last for weeks if not months.

The oil prices have been rising on the back of the concerted supply cuts from the OPEC and non-OPEC members coupled with geostrategic factors and unexpected outages.

Furthermore, an investment analyst has warned that Kuwait may be eyeing to up the ante by raising oil supplies in the international markets. Citing the new expansion projects, Kuwait might have a strong case of oversupplying the markets. With an investment worth more than $ 120 billion in hydrocarbons development projects by 2030, Kuwait is eyeing to tap the rising demand for future.

Kuwaiti authorities have informed that they plan to increase drilling activities in north of country; with a target of raising oil production from 2.8m bpd to 4m bpd.

The company has announced to roll out two of the projects from the list of all to be rolled in first quarter of 2018.