Brent Crude Oil gains as shale oil tipped to be major growth provider

<p>Brent Crude values have jumped following a report by PwC on the impact shale oil will have on the global market.</p>

Brent Crude Oil Futures have made headway in commodities trading this morning (February 14th), following a major report indicating shale oil could provide a significant boost to the global economy.

According to PwC, the extra production of the fuel – which is extracted from the ground via a process known as fracking – could provide $2.7 trillion (£1.7 trillion) by 2035.

Furthermore, the extra supply could reach up to 12 per cent of global oil production – or 14 million barrels every day – and push global oil prices lower by 40 per cent.

In the report, PwC said that the level of global growth could soar by around as much as 3.7 per cent by the extra supply of shale oil, which is the equivalent of adding an economy of around the same size as the UK to the international market in the coming two decades, the BBC reports.

At 10:35 GMT, Brent Crude Oil Futures rose by 0.3 per cent to $118.20 per barrel.

Find out about oil futures and spread betting strategies at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.