A possible strike in Norway could reduce the country's oil production by an estimated 100,000 barrels per day, Reuters reported. Two Norwegian trade unions representing oil workers are expected to meet with representatives in the oil industry on June 16. If the meeting fails to produce an agreement by June 17, several oil platforms off the coast of Norway could shut down. Norway currently produces an average of 1.5 million barrels of oil per day this year.
In addition to oil production, natural gas output could be cut by 15 million cubic meters per day from the production average of 240 mcm per day this year.
Previously, Statistics Norway said oil investments in the country are expected to decrease by 21 percent to reach $33 billion in 2015, which could also impact production, according to Agence France-Presse. Oil investments are projected to peak this year at $38.7 billion. The reduction in investments may impact field development but not oil exploration.
"With a sharp slowdown on the supply side, we risk a tight market and higher oil prices on a 2-3-year horizon," said Thina Saltvedt, analyst with Nordea Markets.