WTI turns positive above $58 as US rig count remains unchanged

Crude oil prices gained traction in the late NA session after the weekly report released by the General Electric Co's Baker Hughes energy services firm showed that the oil drilling count in the U.S. remained unchanged at 747. The barrel of West Texas Intermediate spiked up to a fresh 10-day high at $58.50 before settling at $58.47, 11 cents, 0.19% higher on the day. Despite this recent reaction, however, shale production in the U.S. is expected to continue to rise in 2018 and undermine OPEC's efforts to rebalance the market.

"There were 931 oil and natural gas rigs active on Dec. 22. The average number of rigs in service so far in 2017 was 875. That compares with 509 in 2016 and 978 in 2015. Most rigs produce both oil and gas," Reuters reported. 

In his 2018 forecast report, FXStreet analyst Omkar Godbole, wrote, "US Shale output could derail OPEC's efforts to rebalance the oil market. The International Energy Agency (IEA) believes the rising US shale oil output is likely to delay the too late 2018, said. It sees an oil surplus of 200,000 barrels a day in the first half of 2018 before the markets see a deficit of 200,000 b/d in the latter half of the year. This would leave 2018 as a whole showing a closely balanced market."