IEA: US Shale Output to Rise if OPEC Pushes towards USD60pb, Crude Stocks Up

تم نشره في Wed 16 November / Nov 2016. 01:00 AM
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LONDON — US shale oil producers will increase their output if oil prices hit USD60 a barrel, meaning OPEC will have to walk a fine line if it curtails production to prop up prices, the head of the International Energy Agency (IEA) said.

As for US crude stocks, a rise last week due to hiked refinery output was cited, as gasoline stocks increased and distillate inventories rose, US Energy Information Administration data showed on Wednesday.

Crude inventories USOILC=ECI rose by 5.3 million barrels in the last week, compared with expectations for an increase of 1.5 million barrels.

Refinery crude runs USOICR=ECI rose by 309 thousand barrels per day, EIA data showed. Refinery utilization rates USOIRU=ECI rose by 2.1 percentage points.

US crude imports USOICI=ECI rose last week by 910 thousand barrels per day.

On the other hand, OPEC members are due to meet in Vienna at the end of the month to push through the first output limiting deal since 2008. The decision, if passed, may push oil prices up to USD60 per barrel, and will result in a significant increase in shale oil production from the US, according to the Reuters special report.

Low prices have led to two consecutive years of falling investment in upstream oil and gas investments, a pattern expected to continue in 2017, say specialists interviewed by Reuters, leading to tighter oil supply and price spikes in the future, prophesising a period of greater oil price volatility.