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12 Nov 2014
US Shale boom under threat of low oil prices – IEA
FXStreet (Mumbai) - The International Energy Agency (IEA) has warned that the investments in the US shale oil fields will decline sharply if the Crude prices continue to hover around USD 80/barrel.
As per the IEA, Crude prices at four-year lows could lead to a decline of 10% in US shale investment in 2015. Moreover, this could lead to a decline in production in the medium term, although the IEA did not reveal any changes to its forecasts. However, many industry watchers contradict IEA when they state that the breakeven level of the shale producers is much lower than the current price of Crude.
Meanwhile, WTI Crude for December delivery is trading 0.56% lower at USD 77.55/barrel ahead of the weekly inventory report from the Department of Energy. As per Reuters forecast, the data is likely to show crude stocks rose 300,000 barrels on average last week.
As per the IEA, Crude prices at four-year lows could lead to a decline of 10% in US shale investment in 2015. Moreover, this could lead to a decline in production in the medium term, although the IEA did not reveal any changes to its forecasts. However, many industry watchers contradict IEA when they state that the breakeven level of the shale producers is much lower than the current price of Crude.
Meanwhile, WTI Crude for December delivery is trading 0.56% lower at USD 77.55/barrel ahead of the weekly inventory report from the Department of Energy. As per Reuters forecast, the data is likely to show crude stocks rose 300,000 barrels on average last week.