OPEC, for some quiet moments..

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Top oil industry officials in Davos aren’t turning completely bullish just yet. Capping their enthusiasm is U.S. shale oil, which is likely to limit price increases and usher in a period of greater volatility. U.S. supply is already returning at $50/bbl, Saudi Arabia Energy Minister Khalid Al-Falih and BP Plc CEO Bob Dudley said in Davos, Switzerland, on Tuesday. Higher prices will accelerate that process, according to International Energy Agency Executive Director Fatih Birol.

Oil bosses see shale rebound capping 2017 price surge

Libya’s oil production rebounded to about 700,000 bpd after dipping temporarily due to power outages that disrupted operations at some of the OPEC member’s fields. Electricity is returning gradually to fields in western Libya following a blackout on Jan. 14, according to a person familiar with the matter, who asked not to be identified for lack of authorization to speak to news media. Oil output dropped to 655,000 bpd this week as a result of the outages, and production should increase further as electricity is restored at more fields, the person said.

Libya oil output said to rebound with power returning at fields

Oil-price gains will trigger a “significant” increase in U.S. shale output as OPEC and other producers rein in supply, according to the head of the International Energy Agency. “U.S. shale-oil production will definitely react strongly,” Executive Director Fatih Birol said Wednesday in a Bloomberg Television interview in Davos, Switzerland. At $56 to $57/bbl, “a lot of shale plays in the United States would make perfect sense to produce.”

IEA sees significant gains in U.S. shale oil as prices rise

The surprising strength of the oil market is the main reason why OPEC could end output cuts by the middle of the year, Saudi Arabia’s energy minister said. OPEC and Russia may not need to extend the curbs when they expire in June, Khalid Al-Falih said in an interview at the World Economic Forum in Davos, characterizing his view as a “bullish sign.” The market is re-balancing as demand proves unexpectedly robust and OPEC’s Gulf members and Russia cut supply by more than they promised, he said.

Oil’s surprise strength is speeding OPEC goal, Saudi Arabia says