American Expectations Of A Fall In Oil Production in 2016
California – The International Energy Agency said today that the decline in oil prices will force producers outside the Organization of Petroleum Exporting Countries (OPEC), including the United States to cut their production next year, the highest pace in more than two decades in order to restore balance to the market about supply bloated oil.
It said the agency, which advises major economies in the world with regard to energy policy, global demand for oil tends to rise to the highest pace in five years this year thanks to low prices.
The IEA revised its forecast for demand for OPEC oil in one of the more optimistic about the organization reports that surprised the markets since last year its decision not to cut production and opted to protect its market share in the face of competitors with high-cost producers such as the United States.
The IEA said in its monthly report “highlights of this month is the low supply and supply the spotlight firmly on the non-members of OPEC.”
She added: “the erosion of oil prices curb the high production cost of the Eagle Ford in Texas to Russia and the North Sea, which could result in the loss of half a million barrels a day next year – the biggest drop in 24 years.”
It will be the expected decline in production is the largest of its kind since 1992 when the contracted supply from non-OPEC supply by one million barrels per day compared with the previous year with the collapse of the Soviet Union.