US pre-open: Oil production to hit 26 year high, EIA says

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LONDON (ShareCast) - The main US equity averages are now being called to open modestly higher, with average gains of 0.3%.

That follows better than expected sales figures out from Alcoa (NYSE: AA - news) overnight. Far more important, the company expects global demand to recover next year, as China's does.

Of interest, US oil production will jump by a quarter by 2014, to its highest level in 26 years, according to the latest forecasts from the Energy Information Administration (EIA), the US Energy Department's statistical arm.

This is mainly because of the discovery of vast reserves of shale oil.

The EIA is also forecasting that average global oil prices will fall from $112 a barrel in 2012 to $99 in 2014.

Shares of Clearwire are surging after the company received an unsolicited offer from Dish Network (NasdaqGS: DISH - news) , countering an offer by Sprint Nextel (NYSE: S - news) .

Education group Apollo is down by 9% after reporting an 11% fall in first-quarter earnings.

Front month West Texas crude futures are nudging higher by 0.2% to the 93.34 dollar mark on the NYMEX.

10 year US Treasury yields are now flat at 1.87%.

AB