Oil set for weekly loss as shale boom counters IEA’s warning

london — Oil held above $61 a barrel, paring the weekly loss, as investors weighed surging US crude production against a warning from the International Energy Agency of an impending shortfall in global supplies.

Futures in New York rose slightly Friday but headed for a weekly drop of 1.1 per cent. While US crude production jumped to 10.4 million barrels a day last week, according to government data, the dire situation in Venezuela’s energy sector may exacerbate a worldwide supply deficit expected later this year, the Parisbased IEA said.

Oil has been trading in a tight range this month, with prices hovering around $60 a barrel as rising US output continues to stoke fears that a shale boom will limit price increases. Still, the Organisation of Petroleum Exporting Countries and allied producers are continuing production cuts in an effort to drain a global glut and help prop up prices. A robust global economy has also led banks including Goldman Sachs Group to project strong demand for oil this year. West Texas Intermediate for April delivery traded up 16 cents at $61.35 a barrel on the New York Mercantile Exchange at 10.56am London time. The contract is down 69 cents this week. Total volume traded was about 54 per cent below the 100-day average.

Brent for May settlement rose 6 cents to $65.18 a barrel on the London-based ICE Futures Europe exchange.