Crude is stabilizing around $50 a barrel and may only average $55 next year as the global oversupply continues to cap prices, according to two of the world’s top oil executives.
The oil and gas industry will cut $1 trillion from planned spending on exploration and development because of the slump in prices, leading to slower growth in production, according to consultant Wood Mackenzie.
The global oil market will be almost balanced next year as demand continues to rise faster than production, while the current oversupply is much smaller than previously thought, the International Energy Agency said.
Oil declined for a fourth day on concern recent gains were unsustainable, while shuttered Canadian operations started to reopen.
Oil explorers in the U.S. put a pause on their rig cancellations this week as improving technology and rising prices make some basins more profitable.
Oil headed for a second weekly advance as U.S. crude production continued to decline and wildfires in Canada expanded.
OPEC’s strategy to defend market share over prices is working as oil approaches $50 a barrel amid rising demand and declining output from producers including U.S. shale companies, Kuwait’s acting oil minister said.
Oil advanced as Goldman Sachs said the market moved into a deficit earlier than expected and China’s refineries processed crude at record rates.
The global oil surplus in the first half of this year will probably be smaller than previously estimated because of robust demand in India and other emerging nations, the International Energy Agency said.
Oil’s climb above $45 a barrel is reassuring influential figures from BP to the International Energy Agency that the industry is finally recovering from the worst slump in a generation. Others say the market is about to fall into the same trap as last year.
Oil markets are signaling that prices have bottomed out even as growth in demand for crude is forecast to slow this year, according to a senior executive at Vitol Group, the world’s largest independent oil trader.
Oil rose above $43 a barrel to its highest level so far in 2016 against a backdrop of a weak dollar, signs of increased demand from China and lingering hopes that a meeting of oil producers will agree steps to tackle the global supply glut.
The London market struggled for direction as commodity stocks rallied higher despite a drop in the price of oil.
Oil climbed the most in almost two months as U.S. crude output continued to slide before a meeting between suppliers to discuss freezing production.
Oil at $35 a barrel is neither too high nor too low but just right to make shares of US explorers worth buying, according to Goldman Sachs.
Top-flight shares plunged into the red after commodity falls weighed on heavyweight oil firms and miners.
Oil prices firmed in thin Easter holiday trading today, adding to gains in recent weeks as optimism holds that a production freeze among major producers may be implemented.
Oil dropped a second day after US crude stockpiles expanded again, keeping supplies at the highest level in more than eight decades.
Oil fell as the dollar strengthened against the euro after two explosions ripped through the Brussels airport departure hall on Tuesday morning.
Oil rose above $42 a barrel on Friday, hitting its highest this year and extending a rally into a fourth week on expectations of a production freeze by major exporters, stronger seasonal demand and dollar weakness.
Oil advanced to $40 a barrel in London for the first time since December as U.S. drillers cut the number of active rigs to the least in more than six years amid a global glut.
Oil capped the biggest weekly gain since August amid signs of strengthening US fuel demand and speculation that some producers will complete an accord to freeze output.
Oil extended declines after Iran said a proposal by Saudi Arabia and Russia for producers to freeze output was “ridiculous” as the Persian Gulf nation seeks to boost exports after years of sanctions.
JP Morgan will set aside an additional half a billion dollars to cover potential bad loans to oil and gas companies in the first quarter, underlining the sharp deterioration in the U.S. energy sector.
The influential International Energy Agency sees oil markets rebalancing in 2017 thanks to falling US production but the decline will prove short-lived as efficiency gains will push U.S. output to new records by the beginning of the next decade.