OPEC says investment slowdown could threaten global oil supply
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.