OPEC and its Russia-led non-OPEC allies reaffirmed that they will stick to the oil production cut agreement until the end of 2018.
According to Russia’s Energy Minister Alexander Novak, the participants of the deal consider it necessary to adhere to the agreement reached on November 29-30 for the whole period of 2018.
Producers made the decision due to the fact that the oil market still is not fully re-balanced.
The minister also noted that oil prices were on average 30% higher last year compared with the levels in 2016, and in 2017 the growth of investments in the industry grew by 6%. In addition, compliance with the cuts exceeded 100% over the past five months.
It was also reported that there could be more producers in the deal.
Meanwhile, OPEC raised its outlook for oil output growth in non-cartel countries for the second consecutive month. At the same time, the forecast for demand for OPEC oil was downgraded.
Non-OPEC production is expected to increase by 1.15 million bpd this year. OPEC also cut its estimate of global demand for its crude in 2018 to 33.09 million bpd from 33.15 bpd.
