Lightstream Resources Ltd. LSTMF

IEA sees U.S. oil output collapsing next year on low prices

[kmapp]

 

"The big story this month is one of tightening supply, with the spotlight firmly fixed on non-OPEC," the IEA said in its monthly report. 

"Oil’s price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea, which may result in the loss next year of half a million barrels a day – the biggest decline in 24 years."

The projected drop in output would be the largest since 1992, when non-OPEC supply contracted by 1 million barrels per day (bpd) from the previous year, with the collapse of the former Soviet Union.

Meanwhile, global oil demand growth is expected to climb to a five-year high of 1.7 million bpd or 1.8 percent in 2015, before moderating to a still-above-trend 1.4 million in 2016 - 0.2 million more than in the previous IEA report.

In the second half of 2016, OPEC would need to pump some 32 million bpd - the first time the world would require more oil than the group currently produces.

Full story at:https://ca.finance.yahoo.com/news/iea-sees-u-oil-output-collapsing-next-low-113227506--finance.html