Energy Shares Fall on Concerns About Higher U.S. Output -- Energy Roundup
Shares of energy companies fell as oil prices were mixed.
The market digested fresh signs that U.S. crude production could cause global supply to outpace demand this year. The International Energy Agency said Tuesday crude output from countries outside the Organization of the Petroleum Exporting Countries should surpass global demand in 2018 and weigh on oil prices. U.S. shale companies are churning out crude oil at a record pace that could overwhelm global demand and reverse the oil market's fragile recovery, the group said. In its closely watched monthly oil market report, the agency called the situation "reminiscent of the first wave of U.S. shale growth" that precipitated the oil-market selloff and price crash in late 2014.
Meanwhile, natural-gas prices rose as investors took advantage of the lowest prices in a year and a half and as weather forecasts began to indicate colder temperatures could be on their way. Natural-gas prices have tumbled nearly 30% since the end of January as mild temperatures and record production levels weighed on the market. ([email protected])