24 Mar 2015
Oil to decline further in coming months – KBC
FXStreet (Barcelona) - The KBC Bank Research Team explains that the recent comment from the CEO of Schlumberger indicating the adverse effect of falling oil prices on US shale oil producers, only confirms their view of further declines in oil prices in coming months.
Key Quotes
“Regarding news, CEO of Schlumberger – one of major oilfield service companies – said that a sharp decline in oil prices could have a permanent effect on US shale oil producers in a sense that oil producers would be more prudent while investing into new production capacities.”
“Let us recall that, according to the latest EIA Drilling Productivity Report, oil production may slightly decline in three major US shale oil producing regions as soon as in April as a result of slumping number of active rig count and high decline in oil production from legacy wells.”
“We believe that factors mentioned above support our scenario that bets on a decline in oil prices in months to come and their recovery above current levels towards the end of this year.”
Key Quotes
“Regarding news, CEO of Schlumberger – one of major oilfield service companies – said that a sharp decline in oil prices could have a permanent effect on US shale oil producers in a sense that oil producers would be more prudent while investing into new production capacities.”
“Let us recall that, according to the latest EIA Drilling Productivity Report, oil production may slightly decline in three major US shale oil producing regions as soon as in April as a result of slumping number of active rig count and high decline in oil production from legacy wells.”
“We believe that factors mentioned above support our scenario that bets on a decline in oil prices in months to come and their recovery above current levels towards the end of this year.”