OPEC’s Secretary General Mohammad Barkindo said on Wednesday that the drop in the size of invstements in oil industry over last years threatens future supplies.
Barkindo said in a statement to KUNA that the oil market that has been out of balance since the autumn of 2014 would gradually return to its equilibrium in 2018.
Barkindo confirmed that the year of 2018 would witness a balance market that will bring back reasonable price of oil which will be fair to both consumers and producers, as well as reenergizing investments in industry.
OPEC and non-OPEC producers’ joint ministerial conference in Vienna last November agreed to extend oil output cuts until the end of 2018 in order to give a strong signal to the market to ensure consistency and credibility towards the joint effort of OPEC and none OPEC to assist the market to restore balance.
Barkindo hailed the high level of commitment to this adjustment throughout 2017, adding that there is no reason to doubt that the participating countries would continue with this level of commitment through 2018.
He stressed that the OPEC agreement to cut production is not related to a specific price, but aims to achieve a number of objectives, the most important of which is to reach stability in the global oil market and withdraw the surplus.
The OPEC chief praised the agreement for cementing long-term cooperation between the two groups to rebalance the markets in case of any disruption in the future
Source: Kuwait news Agency