Gap Between WTI And Brent Increases Shale Oil Demand

However, a stronger US dollar capped oil price gains. The US currency has been boosted by expectations that the incoming Donald Trump administration's policies will boost growth and lift inflation

While crude oil prices for both major benchmark Brent and WTI have been rising, analysts say that with difference in both types of oil price is also widening which has increased demand for shale oil from US and going ahead WTI (West Texas Intermediates) price will go up further. At present Brent oil is higher by 12 per cent. Not only that, at higher price shale oil becomes profitable shale oil production is likely to go up which could act as a cap for rising Brent oil price, according to analysts.currently WTI is trading around $56-57 while Brent oil arount $63-64 per barrel.However, in near future trend is looking bullish for crude oil, be it Brent or WTI. T Gnanasekar, Director CommTrendz Research, a risk advisory firm, said, "so far shale oil producers in US were selling many times at a loss just to keep business going but now their shareholders are advising not to sell at a loss. Since prices are rising, contrary to general belief shale producers may not produce oil in big ...