Gold Silver Reports – OPEC Must Rethink Plans as $60 Oil Brings New Glut, IEA Says — OPEC and other petro-states need to “reconsider” their output plans due to a fresh wave of U.S. shale oil, the head of the International Energy Agency said.
The warning followed a new forecast that could make uncomfortable reading for the cartel. The production cuts that helped lift oil prices above $60 a barrel are also unleashing a supply surge from non-OPEC rivals including Brazil and Canada, which will cover all growth in global demand until 2020, the IEA said.
“Established producers need to reconsider their production plans quickly and substantially in light of the huge production increase from U.S. shale,” the agency’s Executive Director Fatih Birol said Monday on the sidelines of the CERAWeek by IHS Markit conference in Houston. Asked whether he was referring to OPEC nations, Birol said: “All OPEC producers are established producers.” – Goldman Neal Bhai Reports