WTI drifts back below $50 per barrel

NEW YORK, Feb. 11 (UPI) -- The price for the U.S. benchmark for crude oil dipped back below the $50 per barrel mark Wednesday after estimates of growth in U.S. oil production.

The price for West Texas Intermediate continued its drift lower during the second week of February, off about half a percent from the previous close to trade at $48.70 early in the Wednesday session. WTI prices, though rallying from the end of January low of around $44 per barrel, are down about 5.2 percent so far this week.

Crude oil prices are off about half from the June values as markets swing toward the supply side on the back of a weak global economy and increased crude oil production, largely from the United States.

In its short-term market report, the U.S. Energy Information Administration said total crude oil production for January averaged 9.2 million barrels per day. For 2015, production should rise by another full percent and by 3 percent of the 2014 level in 2016. If EIA forecasts are accurate, total U.S. crude oil production will in two years be close to the historic peak of 9.6 million bpd reached in 1970.

EIA said it expects WTI prices for 2015 will average about $3 less per barrel than the global benchmark price for Brent, which fell 1.6 percent from the previous session to trade near $55.50 early Wednesday.

EIA expects Brent to average $58 per barrel this year and $75 for 2016. A December contract for Brent traded Wednesday at $69.89.