IEA: Oil market volatility will increase

Baku. 16 November. REPORT.AZ/ The industry is entering a period of greater oil price volatility, Report informs citing the Vestifinance Fatih Birol, the IEA's executive director said.

"If oil prices rise in the short term, then shale producers can react quite quickly to put more oil on the market, producing a see-saw movement,” Birol said.

“And if we continue to see subdued investments in new conventional oil projects, this could have profound consequences in the longer term,” he added.

IEA said total oil production will reach 14,1 mln barrels a day by an increase in US shale oil production of 900 thousand barrels / day. in non OPEC countries production will increase by 1,1 mln barrels / day and reach 54,3 mln barrels / day. Notably, this forecast compared to two forecasts decreased by 600 thousand barrels / day.

OPEC oil production can reach 39.2 million barrels/day by 2020. 

Notably, OPEC's daily production is currently 33.64 million barrels/day.