OPEC says in­vest­ment slow­down could threaten global oil sup­ply

The Myanmar Times - - International Business -

THE head of the OPEC oil car­tel warned that sharp cut­backs in in­vest­ment by petroleum firms pose a threat for fu­ture sup­plies.

Mo­hammed Barkindo said that af­ter plung­ing by 26 per­cent last year, a fur­ther 22pc drop in in­vest­ment was ex­pected this year.

Oil firms have slashed their in­vest­ment bud­gets as they seek to adapt to the price of crude fall­ing from over US$100 per bar­rel in 2014 to un­der $30 at the be­gin­ning of this year be­fore re­cov­er­ing to around $45.

Mr Barkindo called the cut­backs a “ma­jor con­cern for in­dus­tries which need reg­u­lar in­vest­ments” and “which threaten our fu­ture”.

The OPEC sec­re­tary gen­eral said “to re­vise this cut in in­vest­ments, the process of re­bal­anc­ing the mar­ket needs to be fast tracked”.

Oil prices haven’t re­bounded with OPEC car­tel states pri­mar­ily re­spon­si­ble as they have kept out­put high.

The 14 OPEC states and Rus­sia are due to meet next week, with Venezue­lan Pres­i­dent Ni­cholas Maduro say­ing a deal on lim­it­ing out­put was close.

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