It does not necessarily reflect the views of Rigzone. Technical traders may pay very close attention to how prices react to $1,210 with a breakout above sparking a further up move towards $1230.
They have rebounded since the OPEC deal was struck in late November, clearing the way for a number of non-member countries to pledge cooperation in the bid to boost prices.
Seven of the world's largest oil producing companies, including Exxon Mobil Corp. and Royal Dutch Shell, are eyeing an increase in oil output by 398,000 bpd this year, capitalizing on the higher crude prices and the newly-found profitability of oil extraction that stem from the OPEC oil cuts.
Brent crude futures was up 70 cents at $55.80 a barrel (bbl) by 5:35 a.m. CT (11:35 GMT).
The WTI price was $53.98 (P 2,672.82) per barrel on Jan.6, although the oil price bounced back on Wednesday as the USA dollar collapsed during US President-elect Trump's remarks at his press briefing.
Oil and other liquids output in Kazakhstan totaled 1.75 million barrels per day in 2015 and 1.72 million barrels in 2016, according to the EIA. Oil, gasoline and distillate inventory levels are at or above the average range for this time of year. The U.S. refinery utilization rate rose week over week by 1.6 percent to 93.6 percent, and broke a 35-year record for the level of inputs into the refining system.
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The US Energy Information Administration (EIA) said on Tuesday that crude production in the United States this year would rise by 110,000 barrels per day to 9 million bpd.
"EIA data showed USA refineries increased the amount of crude they processed, pushing the utilization rate to the highest since September".
Oil and gas analysts at Seaport Global Securities also suspect ramping production and the continuing supply-demand imbalance to eventually overtake positive OPEC-driven sentiment.
A November agreement by OPEC, followed by a December arrangement with non-OPEC producers like Russian Federation, is aimed at correcting a market tilted heavily toward the supply side.
With the cartel's mismanagement since 2014, it has reflected an unwillingness to repeat the same mistake of an output reduction between 1980 and 1985, in which those cuts had slightly affected the over-supply globally and damaged OPEC market share and revenue.
"I see this (rise in oil prices) as a dead cat bounce", Ole Hansen of the Copenhagen-based Saxo Bank. Annual estimated and forecast production levels for 2016, 2017, and 2018 were revised up to 96.4 million b/d, 97.5 million b/d, and 98.9 million b/d, respectively. Off-topic, inappropriate or insulting comments will be removed.