Opec deal could lead to US shale surge

“Apart from the OPEC cut, I am anxious that when we make a cut and get the normal price there is the possibility of shale production limping up again.So how do we converge everyone producing oil?”. On Wednesday, Brent January contracts rose 8.8% and WTI pacts were up 9.3%.

After sinking in overnight trading, West Texas Intermediate crude, the main North American contract was up 28 cents at midday to $51.33 United States a barrel.

LNG prices hit 2016 high was posted in Business of TheNews International – https://www.thenews.com.pk on December 03, 2016 and was last updated on December 03, 2016.

Russian Federation said on Friday that its output in November rose slightly to 11.21 million barrels per day, a post-Soviet high.

Exactly two years after Saudi Arabia coaxed its fellow OPEC members into letting market forces set the oil price, it has performed a nifty half-pirouette.

Because the new OPEC agreement was such a big deal, we’ve made a new oil price prediction.

This sent oil prices to soar to above $50 a barrel.

Crude oil prices rallied more than 10 percent at one point after members of the Organization of Petroleum Exporting Countries agreed to coordinate on a production ceiling of around 32.5 million barrels per day.

If the production cut succeeds and drives up the price of oil, that would encourage North American oil shale producers to resume drilling and complete unfinished wells.

Brent for February settlement climbed US$0.52, or 1 percent, to US$54.46 a barrel on the London-based ICE Futures Europe exchange.

Higher oil prices and lower production costs are encouraging U.S. shale operators to increase output, while Kazakhstan started production at the Kashagan field in October.

OPEC members agreed on Wednesday to cut production by about 1.2 million bpd from a record high of 33.8 million bpd in October.

Motoring organisations warned the Opec deal could push petrol prices up by 9p a litre, adding an average £5 to the cost of filling a vehicle.

He said that fuel prices were also fixed for the coming weeks and the government was working to ensure the spike in oil prices would have the least possible impact on fuel prices in the first few months of next year.

The minister expressed his worries about a surge of Shale oil production.

Natural gas prices jumped 4.8 percent Thursday to close at $3.51 per thousand cubic feet after the U.S. Energy Information Administration said the country’s storage levels dropped by 50 billion cubic feet last week and as weather forecasters are projecting a blanket of cold air to sweep across much of the country over the next week.

The speculator group cut its combined futures and options position in NY and London by 2,418 contracts to 189,677 during in the week to November 29, the U.S. Commodity Futures Trading Commission (CFTC) said.