In the latest round of price hikes, U.K. and Canadian oil producers have been hit with higher prices in the face of declining demand for oil and a global glut of supplies.
The U.N. energy agency said on Monday it was forecasting that oil prices in 2017 will be higher than last year.
The agency said global oil production was expected to decline by more than a third from a year earlier.
oil and gas sector, the world’s largest, was hit hardest by the price hikes.
“The market is pricing in lower oil prices, which are expected to continue in the second half of the year, which will make it harder for the industry to expand and to keep the market price for production down,” said John Bates, an analyst with Analysts in Energy at Aberdeen Asset Management.
Bates said the rise in the cost of oil and other commodities is forcing producers to lower their production levels, which has pushed up the cost for consumers and businesses.
“The higher prices that we’re seeing right now will have an impact on the industry, and the industry is going to have to adjust,” Bates said.
The price hikes have also hit U.A.E. producers, which have been battling low crude prices and a weak global economy.
Bates expects the U.
Ana-based producers, who are currently producing about 10 million barrels per day (bpd) of crude, will have to cut production by at least 3 million bpd in 2018, or more than double their current level of production.
A report by the International Energy Agency (IEA) said global crude oil production is expected to fall to 9.1 million bps in 2019, from a high of more than 13 million bp in 2017.
In 2017, U,A.S., Canada, and Nigeria had the biggest oil and natural gas reserves and had the highest average prices for the sector.
But as production declines, the average price of oil is also expected to rise, said Ben Siegel, senior analyst with oil consultancy EY.
“In the longer term, the prices of oil will rise, and that means prices will rise for a longer period of time,” Siegel said.
“You’re going to see a more pronounced price increase for oil.
That’s just going to drive more investment.”
The impact of the U,B,A,N,N and N prices will be felt by oil producers as well as consumers.
“I’m going to be really disappointed with the results,” said David Eberhart, chief executive officer of the Energy Transfer Partners, which owns the Eagle Ford shale gas and oil fields.
“It’s really unfortunate.
We had a pretty good year last year, and it was a bit of a fluke for us.
We were ahead of schedule in getting oil out the ground.
We’re going back to square one.”
“I think it’s going to really hurt the U,” he added.
The United States and Canada are the top two producers in the world.
British Petroleum, the United Kingdom’s biggest oil company, said it had been forecasting higher oil prices for years.
It expects the price to rise in 2017 to about $60 a barrel from $56.50 last year as demand continues to decline, said spokesman Mark Harrison.
At the same time, Brent crude oil, the international benchmark for the global benchmark price of Brent crude, has been falling.
Analyzing the price of the oil in the past, Eberhart said Brent crude is at its lowest point since early 2014, and he expects the next two months to be a period of high prices.
“We’re expecting Brent crude to fall more than the last six months.
We’re also seeing the price dropping more than what we’ve seen the last few years.
We see it going down from $59 a barrel to $56, and I think that’s pretty scary,” he said.
On Friday, U.S.-based producers Chevron and Royal Dutch Shell cut prices by $2 a barrel.
Shell and Chevron have also announced they will be cutting prices by another $1 a barrel in the next couple of weeks.
UBS estimates that the price hike will cost the U.,S.
economy about $3 trillion in 2019.
Siegel said oil prices have been volatile, so the impact of any price hike could be felt for years to come.
“It’s going back, in my opinion, to the dark ages,” he explained.