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US Media: Global Oil Prices have not Skyrocketed Because the Time has not Come yet
International Energy Network News: According to a report on the US "Business Weekly" website on May 8, according to data from Citigroup, the current global political unrest has resulted in a reduction of 3.5 million barrels of oil production per day. As tensions in Ukraine escalate, European countries' sanctions on Russia, the world's largest oil producer, will cause oil prices to rise, which will lead to economic recession in European countries.But the oil market is calm. The price of Brent crude oil even fell from US$110 on April 24 to US$107 on May 6. Eric Lee, an oil analyst at Citigroup, said the past three years have been the most stable years for oil prices in living memory.
According to reports, the reason why oil prices have not risen sharply is that the development of shale gas in the United States and the increase in oil production in Canada have filled this gap. As early as 2011, U.S. shale gas production began to rise rapidly. Since then, U.S. daily oil production has risen from 3 million barrels to 8 million barrels. Since May 2011, Canada's daily oil production has also increased by 1 million barrels. "The development of shale gas in North America is an important factor in cooling oil prices. If not for this, oil prices may have risen to $150." Lysle Brinker, an oil analyst at IHS Energy, said.
However, reports pointed out that this calm situation will not last long. In the next five years, the world's oil will experience a process from surplus to shortage. Rising non-OPEC oil production, reduced Chinese demand for oil, and the recovery of oil production in countries such as Libya will all lead to higher oil production and lower prices. But in the long run, after falling prices, oil prices will rise. Since 2014, major oil giants have reduced investment. "This will cause oil to skyrocket, and 2019 will be hell." said Charles Maxwell, an experienced oil analyst.
