IEA expects U.S. shale output rise if OPEC pushes oil to $60
- Wall Street declines as some post-election gainers reverse
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- United Airlines (UAL) Tops Q4 EPS by 5c
- Obama shows clemency to Manning, intelligence analyst behind leaks
- Big 5 Sporting Goods (BGFV) Q4 Comps Rise 3.1%; Guides Q4 Above the Street
The tanker carrying the first shipment of U.S. shale gas passes seals on a buoy as it travels to dock at Grangemouth in Scotland, Britain September 27, 2016. REUTERS/Russell Cheyne
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
By Susanna Twidale
LONDON (Reuters) - U.S. shale oil producers will increase their output if oil prices hit $60 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.
OPEC members are due to meet in Vienna at the end of the month to push through the first output limiting deal since 2008.
"If this decision pushes the prices up (to) around $60 dollars, we may well see a significant increase from shale oil from the U.S.," Fatih Birol told Reuters on Wednesday.
He said this level would be enough for many U.S. shale companies to restart stalled production, although it would take around nine months for the new supply to reach the market.
Low prices have led to two consecutive years of falling investment in upstream oil and gas investments, a pattern Birol expects to continue in 2017.
This, he said, could lead to tighter oil supply and price spikes in the future.
"We are entering a period of greater oil price volatility and the companies, organizations and countries should prepare themselves accordingly," he said.
(Editing by Alexander Smith)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oil steady as weak dollar offsets U.S., Russia output forecasts
- Exclusive: Nigeria's efforts to secure international loans hit deadlock - sources
- Former USDA chief Vilsack named head of U.S. Dairy Export Council
Create E-mail Alert Related CategoriesCommodities, Reuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!