PATH TO OIL PRICE RE­COV­ERY

Spec­u­la­tion is rife that the oil price could reach $60 per bar­rel in 2017 and $70 in the sub­se­quent year, but a price of more than $50 would trig­ger ad­di­tional out­put from US shale pro­duc­ers, push­ing mar­ket “re­bal­anc­ing” to late 2017, ac­cord­ing to a study

Qatar Today - - BUSINESS > OIL & GAS -

Ac­cord­ing to the two out­put cut agree­ments within the Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries (OPEC) and with non- OPEC mem­bers, a to­tal of 1.8 mil­lion bar­rels per day (mbpd) of crude oil are to be cur­tailed, start­ing next month. “An oil price of over $50 would trig­ger ad­di­tional out­put from US shale pro­duc­ers as seen in the past few weeks of ris­ing rig count and would partly off­set the ex­pected im­pact of the OPEC agree­ment,” said a Kamco re­search pa­per, adding that this would push mar­ket re­bal­anc­ing to late 2017 as against a more op­ti­mistic fore­cast from some agen­cies.

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