The International Energy Agency on Tuesday said the recent oil price decline is casting doubt on the sustainability of current high supply growth rates, but also said that most tight oil production in the US would still be profitable at a Brent oil price of $80/b. Brent crude futures have fallen by 20% since June, and this week fell below $88/b to near four-year lows. There have been suggestions that unconventional oil production in the US could cease to be economical if the price were to fall much lower, and a Saudi official recently suggested that the high cost of shale oil might put a floor under prices around $90/b. “Close analysis of light, tight oil supply suggests that most of it remains profitable at $80/b Brent,” the IEA said in its latest monthly report. Article continues below… Request a free trial of: Oilgram […]