The International Energy Agency has cautioned oil producing countries spikes in oil prices are not sustainable for global economy and another spike in crude prices will result in a strong response in production from countries including US, Brazil, Mexico and Africa.
According to IEA Executive Director Fatih Birol, a second wave of shale oil is on its way and is gaining momentum in response to increase in crude prices. “If we see another price hike coming, there will be a strong response from US shale production, offshore production from Brazil and Latin American countries, Africa and other places. We have seen the first wave of shale coming to markets. It slowed down during lower prices but now we are going to see the second wave of shale coming,” Birol said.
He was speaking to the media at the ongoing 16th International Energy Forum (IEF) here. Read More