IEA Warns Low Oil Prices Could Lead to Shortages

Low oil prices could lead to global fuel shortages in the future, the International Energy Agency has warned.

The IEA said Tuesday that while low prices are good for consumers, they could eventually “trigger energy-security concerns.”

The low prices are squeezing U.S. shale and other high cost producers. Many have been forced to slash investment budgets to cope with the new reality.

The IEA said that spending on exploration and production has fallen 20% this year, and it warned against further cuts.

via CNN

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza