WTI oil price at $72, US oil production in 2011 to drop

WTI oil prices are trading back over the $72 mark on Wednesday as US crude oil production in the United States is expected to fall to 5.38 million barrels, produced daily in 2011. US Light crude oil futures for July rose 55 cents to $72.22 midday Singapore time on the NYMEX. The US slashed its oil production forecast from federal leases in the Gulf of Mexico by 6.1 percent for 2010, citing a ban on deepwater offshore oil drilling. Crude oil output will average about 26,000 barrels a day lower than previously forecast in the fourth quarter, based on preliminary estimates following the announcement of the six month ban on May 27th, the US Energy Department said in its Short Term Energy Outlook. The US government also estimated that 2011 oil production would drop by 70,000 barrels a day because of the deepwater oil drilling ban. Gulf of Mexico oil output will be 1.55 million barrels a day in 2011, down from 1.76 million in the May 2010 forecast. Overall US crude oil production for 2011 is expected to drop by an estimated 2 percent, which may have an upward effect on WTI oil prices. Brent oil price trading above $72, looks to US crude data WTI oil price nears $75 after US crude supply data WTI oil price trading higher, over $73 on US supplies data WTI oil price at $69 mark on strong dollar, high stocks WTI oil price trading down 3 percent on firm US dollar Index WTI oil price trading up near $72 on latest US data July WTI Light oil price trading near $73 on US data Light oil price holds at $86, awaits latest US oil stock data Oil price is strong despite headwinds Growth story pushes oil prices higher for the week OPEC weekly crude oil price rebounds to back over $70 Crude oil prices fall four percent on gloomy US jobs data Brent oil price trading over $74 on US market bounce Oil prices open trading around $72 mark, US dollar gains WTI oil price skids under $70 as US dollar firms up WTI oil price finds support around $70 trading range, firms Asia’s richest man says get ready for $100 crude oil price Brent oil price hangs at $80, big premium on WTI crude Light oil price trading down at $77 on US market crash Light oil price trading near $80 on US inventories data, dollar

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WTI oil price at $72, US oil production in 2011 to drop