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Oil grows due to market tightening, though prospects for 2018 are unclear

Oil prices rose on Wednesday, as well as during two previous days in response to the signals of market tightening following long years of exceeding supply, but the prospects for the next year are not so clear.

The global gauge for prices of oil – Brent crude was $56.75 a barrel this morning, which is or 0.25% gain. The day before Brent showed 2% rise.

U.S. West Texas Intermediate crude was $51.09 per barrel - 0.33% up. Like Brent the preceding day was marked by 2% growth, climbing again over $50 for a barrel.

Traders expect the U.S. data on fuel inventory, which is to come out today or tomorrow, to get the signs on the direction of prices. Monday’s federal holiday in the US put off the weekly report on inventory figures by a day.

Today in the evening the American Petroleum Institute is to provide its data for the previous week according to plan, and tomorrow is when the US Department of Energy produces its report. Generally experts are of opinion that tightening would go on in the short-term.

Prices are also being propped up by the economic expansion, which is predicted to be 3.6% globally in 2017 and 3.7% in the next year, as per the International Monetary Fund data.

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