US Energy Secretary is expected to balance the oil market in 2017 and prices at $ 60


 

History of edits:: 1/7/2016 15:031 visits readable
[Oan- up]
US Energy Secretary Ernest Moniz said on Friday are expected to experience the world oil market balance between supply and demand by 2017 , although it will continue to enjoy sufficient supply over the next two years.
In remarks to reporters after a meeting with his Saudi counterpart Khaled al – Faleh on the sidelines of ameeting of energy ministers from the countries of the Group of Twenty in Beijing Moniz he said they agreed that the supply in the oil market still exceeds demand despite the factors affecting production in the short term.
He said Muniz , “What were not there major surprises we are still in a situation where production exceeds demand, the gap is narrowing with global demand growth gradually. ”
he added , ” what he said [Falih] is that the balance between supply and demand could be achieved at theend of this year, this is logical, but it may also be in the next year and, when achieving such a balance , there will still be a large supply because of the abundant reserves , which amounted to historical levels. ”
US energy Secretary said , ” that with the recovery of prices to a level between $ 50 and $ 60 a barrel will be used more rigs and complete more wells in the United States after it trimmed companies produced with thedescent of crude below $ 40 a barrel. ”
he continued , ” then look like the market is structurally in very good supply and there is no reason to believe that there will be significant changes over the next two years. ”
with regard to oil policy Moniz said , ” Falih explained Saudi Arabia is looking for long – term framework for setting prices in the oil market depends on the movement of the market and not the quota. ”
He stressed Muniz during a meeting of the Group of twenty this week that” the United States supports a time frame to get rid of fossil fuel subsidies by the middle of the next decade or 2030 , but countries did not agree on the time frame for lifting the progressive support. ”
he urged officials from the United Nations and the European Union in addition to the 200 NGOs twenty this week set to put an end to talks – year and follow the example of the Group of seven industrial nations in setting a date for the removal of subsidies for coal, gas and oil.
the minister said American that with the increase in LNG from Australia ‘s gas supplies and proceed to theUnited States in the liquefied natural gas export weaken the link between liquefied natural gas prices and oil prices , which means that there will be the most competitive prices in the spot market.
he added that this will be beneficial to China , which sees natural gas as an effective way to reduce emissions.

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