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gamesindustryblog.com July 24, 2017


IEA warns of potential shortage of global oil supplies in 3 years

07 March 2017, 12:43 | Ignacio Smith

IEA warns of potential shortage of global oil supplies in 3 years

IEA warns of potential shortage of global oil supplies in 3 years

The downside drag on oil prices of higher U.S. crude production being cancelled out by the upside risk of Opec and non-Opec production cuts has meant that oil benchmarks have barely budged from the current mid-$50 prices, and have shown little appetite for a climb to $60. Prices reached the day's high after Iraq's oil minister said OPEC will probably have to extend its output curbs for more than six months.

Oil prices edged lower Monday, as investors continued to weigh OPEC's production cuts against rising production in the U.S.

Saudi Arabia's energy minister Khalid al-Falih, who assumed his role last spring and whose country has contributed the largest share of OPEC output curbs, addresses the meeting on Tuesday. Oil brokerage PVM said current OPEC figures left "no room for an annual rebalancing". A sharp rise from the US shale patch could undo the Saudi-led deal to reduce the global oil glut.

Pointing to U.S. President Donald Trump's promise to reduce regulations in the sector in order to launch an "energy revolution" in the country, experts indicate that American energy companies will have a more positive view in the conference.

Before the start of the OPEC-non-OPEC deal in January, Azerbaijan was producing around 829,100 bpd of oil, according to AzerNews. Commerzank noted that Russia's production would need to fall by a further 100,000 bpd in March in order to comply with the agreement.

Mets' David Wright is still injured. Is he done?
"What's happening here is that the muscles around the shoulder have not re-engaged since the surgery", Alderson said . While at the time the team didn't give a timetable for Wright to return, the surgery ultimately ended his season.

That newfound investment vigor and projections for stronger shale production have kept a lid on the recovery.

Brent crude futures were down 34 cents at $55.56 a barrel by 1036 GMT after settling 1.5 percent higher in the previous session. Oil prices may struggle to breach $60 per barrel, regardless of how much OPEC cuts, if the USA keeps increasing production, according to a Reuters poll.

However, oil investments dropped sharply in both 2015 and 2016, and if that trend continues into 2017, there will be a problem in three years.

Without "substantial" investments upstream, the market could tighten around 2020 as spare production capacity will shrink "big time", Birol told reporters.



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