40686
$60 Oil Possible in 2017
Energy

$60 Oil Possible in 2017

Oil supply growth by OPEC countries will not match the output declines being experienced by non-OPEC producers and this could lead to higher crude prices next year, says a report.
To balance the oil market by 2020, US oil and gas capital expenditure will have to increase by at least 50%, leading oil prices to trade above the current forward strip and into a $55-70 per barrel range, said the  report by Bank of America Merrill Lynch titled “Global Energy Weekly: The Oil Supply Cliffhanger”, Trade Arabia reported.
There is still a large set of drilled but uncompleted shale wells that could come on stream over the next few months and US companies are expected to play a role in stabilizing non-OPEC supplies, it explained.
However, OPEC producers at the moment have limited spare productive capacity or planned investment to meet demand on a forward basis, leaving the oil market exposed to huge supply uncertainties over the next five years, it said.
“One fact remains in this OPEC cliffhanger: non-OPEC oil supply is indeed hanging off a cliff. We estimate global output is set to contract year-on-year in April or May for the first time since the first quarter of 2013 as OPEC growth no longer offsets non-OPEC declines,” the report added.

Short URL : http://goo.gl/Ye4TbT
  1. http://goo.gl/DNtHTu
  • http://goo.gl/E7DNli
  • http://goo.gl/qIeeCc
  • http://goo.gl/G9QtLb
  • http://goo.gl/FYtb5I

You can also read ...

Philippines Struggles to Embrace Renewable Energy
Renewable energy costs are falling across the world, but the...
Oil Prices Rise as China, US Put Trade War on Hold
Oil prices rose on Monday as markets reacted to news that...
India to Keep Fuel Prices in Check
India is looking at ways to keep rising fuel prices in check,...
OPEC Not Rushing to Boost Production
OPEC is not in a rush to start winding down the production...
Iran's electricity industry ranks 14th in the world in terms of output.
Driven by its vast potential in the electricity industry, Iran...
Shourijeh Gas Storage Capacity to Reach 4.5 bcm
Shourijeh natural gas storage facility in the northeastern...
Changing Working Hours  Could Help Save Electricity
Changing working hours in state organizations during peak...

Trending

Googleplus