NEW YORK, April 14 (UPI) -- Strong retail spending in the United States, coupled with expectations of an oil production slowdown, pushed the U.S. benchmark for oil up in Tuesday trading.
The price for West Texas Intermediate, the U.S. oil benchmark, gained more than 1.4 percent from Monday's close to sell for $52.66 per barrel for the May contract. WTI prices are up more than 10 percent since the start of April.
The surge followed a report from the U.S. Energy Information Administration that showed U.S. oil production may be slowing down. Data from the seven shale basins that account for the bulk of U.S. onshore oil production show only the Permian and Utica areas with an expected increase for May.
Oil production from the Bakken shale in North Dakota is expected to drop off by around 1.7 percent, while the Eagle Ford basin in Texas should post a decline of around 2 percent.
EIA warned in previous reports of a short-term decline in oil production. Energy companies are spending less on exploration and production as oil prices remain depressed.
The increase in U.S. oil production swung markets toward the supply side as the global economy struggled out of the recessionary gates. WTI and Brent, the global benchmark, are down about 50 percent from June 2014 levels.
Brent for the May contract was up about half a percent from Monday to trade at $58.25 per barrel. Brent is up about 4.5 percent since the start of April.
Crude oil prices were lifted somewhat from strong retail figures from the United States. The Commerce Department said Tuesday retail sales increased 0.9 percent in March, ending three straight months of declines.
