US share oil industry set for supply growth

Dhaka,  Wed,  28 June 2017
Published : 15 Jun 2017, 13:22:21
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US share oil industry set for supply growth

US share oil industry set for supply growth
A resurgent US shale oil industry will see global supplies grow faster than demand in 2018, the International Energy Agency forecast Wednesday, according to a global media report Thursday. 

It dealt a blow to Opec and other rival producers that have cut output hoping to boost prices. 

The IEA expects global demand will increase by 1.4m barrels a day next year - up from 1.3m b/d in 2017 - as China and India take total consumption above 100m b/d for the first time in the second half of the year.

But this increase is set to be outpaced by growth in supply. Total non-Opec production in 2018, led by the US, is set to rise by 1.5m b/d - or more than double the rate of growth this year. The forecast in the Paris-based energy body’s closely watched monthly report is its first for 2018, and comes after Opec and Russia this year joined forces to cut output and reduce an oil market surplus that is keeping pressure on prices.

Brent crude oil, the international benchmark, fell 3.5 per cent yesterday to $47 a barrel, heading for its lowest close so far in 2017.

Producers agreed in May to extend production cuts as US shale production accelerates, after the industry squeezed down costs during crude’s slump from above $100 a barrel three years ago to less than $50 a barrel today.

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