An OPEC Oil Price Surge May Not Last, IEA Says
- OPEC ministers meet in Vienna Nov. 30 to discuss output pledge
- More U.S. production may trigger downward pressure on prices
An employee collects an oil sample in a jar near the oil pumping machinery at a plant operated by Moravske Naftove Doly (MND) AS in Damborice, Czech Republic, on Friday, Jan. 8, 2016. Oil capped the biggest two-year loss on record in 2015 as the Organization of Petroleum Exporting Countries effectively abandoned output limits amid a global glut.
Photographer: Martin Divisek/BloombergAn oil price surge triggered by a successful OPEC agreement to cut production could be snuffed out as supply surges back, according to the head of International Energy Agency.
If OPEC members agree to limit supplies at their meeting next week, prices could rise to $60 a barrel and trigger a jump in global output, particularly from U.S. shale producers, Fatih Birol, executive director of the Paris-based IEA, said during an interview with Bloomberg Television. The output boom could put downward pressure on prices again within nine months to a year, he said.