By: Mohamed Idris
Riyadh – Mubasher: The oil market is expected to reach a rebalance in mid-2017, after that it will no longer need extensions to the agreement by the Organization of Petroleum Exporting Countries (OPEC), Saudi minister of energy, industry and mineral resources Khalid Al Falih said Monday.
Speaking to journalists at the Saudi Arabia Renewable Energy Investment Forum held in Riyadh, the minister revealed that there were ongoing studies as to whether or not the market will require an extension or not.
It is too early to discuss the decision, Al Falih stated, noting that the original plan did not involve a time frame for the deal but was intended to reach a market balance.
"Since this hasn't happened yet, we will do what is necessary to reach a market rebalance," Al Falih added, noting that a rebalance involves the resumption of investments in line with higher demand.
What matters is the market balance in a year, two or even four years from now in terms of investments, the minister highlighted.
Compliance by OPEC members to the deal surpassed 100%, which is an unprecedented step as some countries complied by more than what was required of them, including Saudi Arabia, Al Falih revealed.
In November 2016, OPEC members agreed to trim oil output by 1.2 million barrels per day in an attempt to boost oil prices higher.
Also on Monday, Al Bilad newspaper reported citing Iraqi oil minister Jabbar Ali Al-Luaibi as saying that Iraq, Saudi Arabia, and Kuwait were looking to increase oil prices to $60 per barrel (pb), which is a level that OPEC members can work with.
The reason for this target is to help bolster these economies, he added.
Translated by: Nada Adel Sobhi
