Experts urge caution as oil prices rise

BG Group - Buzzard production platform, North Sea.
BG Group - Buzzard production platform, North Sea.

The North Sea oil industry must keep a lid on costs if measures taken by Opec and its allies push crude prices much higher, top Aberdeen energy experts said yesterday.

Opec members and Russia agreed in December to reduce production by 1.2 million barrels per day and are now expected to extend the cuts by another six to nine months.

The cartel is trying to stabilise prices in the face soaring US shale production and a weakening outlook for energy demand growth in China and India.

Brent crude, the global benchmark, responded by rising by around 0.3% to $65.05 yesterday, having earlier climbed higher than $66.70.

Marc Gronwald, senior lecturer in energy economics at Aberdeen University, said Opec was in a difficult position and did not want to “further risk its position in the global market”.

Read the full story on Energy Voice.