| Oil supply growth by Opec countries will not match the output declines being experienced by non-Opec producers and this could lead to higher crude prices next year, says a report. To balance the oil market by 2020, US oil and gas capex will have to increase by at least 50 per cent, leading oil prices to trade above the current forward strip and into a $55-70 per barrel range, said the report by Bank of America Merrill Lynch (BofAML) titled “Global Energy Weekly: The oil supply cliffhanger”.
There is still a large set of drilled but uncompleted shale wells that could come on stream over the next few months and US companies are expected to play a role in stabilizing non-Opec supplies, it explained...............................................Full Article: Source
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