Business

US oil output surge 'reminiscent' of run-up to 2014 crash

13 of February 2018

FILE -In this June 12, 2014 file photo, oil pumps and natural gas burn off in Watford City, N.D. The Interior Department says it is replacing an Obama-era regulation aimed at restricting harmful methane emissions from oil and gas production on federal lands. A rule being published in the Federal Register this week will replace the 2016 rule with requirements similar to those that were in force before the Obama administration changed the regulation. (AP Photo/Charles Rex Arbogast, File),FILE -In this June 12, 2014 file photo, oil pumps and natural gas burn off in Watford City, N.D. The Interior Department says it is replacing an Obama-era regulation aimed at restricting harmful methane emissions from oil and gas production on federal lands. A rule being published in the Federal Register this week will replace the 2016 rule with requirements similar to those that were in force before the Obama administration changed the regulation. (AP Photo/Charles Rex Arbogast, File)

A leading energy watchdog says that the boom in U.S. oil production is reminiscent of the rise in output that eventually led to the 2014 crash in crude prices. The International Energy Agency, a policy advisor to countries, says in its monthly report that "in 2018, fast rising production in non-OPEC countries, led by the U.S., is likely to grow by more than demand."

PARIS (AP) — A leading energy watchdog says that the boom in U.S. oil production is reminiscent of the rise in output that eventually led to the 2014 crash in crude prices.

The International Energy Agency, a policy adviser to countries, says in its monthly report that “in 2018, fast rising production in non-OPEC countries, led by the U.S., is likely to grow by more than demand.”

A recent, steady increase in the price of oil has seen more U.S. producers in particular come back on line. That’s because U.S. shale oil extraction requires higher selling prices to break even than production in states like Saudi Arabia.

The Paris-based IEA said Tuesday that the current situation is “reminiscent” of a wave of U.S. shale growth that preceded the 2014 crash in energy prices.