Brent crude futures fall as IEA chief forecasts higher supplies

Then current oil prices would definitely trigger a "strong" supply response from US alternative oil producers, the chief of the rich-world´s energy watchdog said.

In remarks to Bloomberg TV, the head of the International Energy Agency, Fatih Birol, said “US shale-oil production will definitely react strongly [as a result]”.

Speaking on the sidelines of the World Economic Forum in Davos, Switzerland, Birol said: "a lot of shale plays in the United States would make perfect sense to produce."

In December, the Paris-based IEA said US shale oil production would only rise "marginally".

A "big chunk" of global oil production had become profitable at prices of between $50 to $55 a barrel, he said.

He cited Brazil, Mexico and China among the countries which were expected to boost output.

As of 1334 GMT, front month Brent crude oil futures were falling 1.48% to $54.66 a barrel.