Baku, Azerbaijan, Jan.17
By Leman Zeynalova – Trend:
OPEC’s oil output deal should hopefully see the market balance by the end of the first half of 2017, according to the chief executive officer of the Saudi Arabian Oil Company (Saudi Aramco) Amin Nasser.
He made the remarks during the "Strategic Update: The future of energy" session held as part of the World Economic Forum which kicked off in Davos Jan.17.
Nasser pointed out that $25 trillion is needed to be invested in new oil capacity globally over the next 25 years.
“While we are building our capacity in oil, we also invest in renewable energy,” he added.
During the Vienna meeting held Nov.30, OPEC members decided to implement a new OPEC-14 production target of 32.5 million barrels per day.
It was also decided to establish a High-level Monitoring Committee, consisting of oil ministers, and assisted by the OPEC Secretariat, to monitor the implementation of the agreement.
Later, non-OPEC countries agreed to cut the oil output by 558,000 barrels per day during the meeting held Dec.10.
Eleven non-OPEC countries agreed to reduce the oil output: Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and Republic of South Sudan.
OPEC and non-OPEC countries pledged to implement the reached deal from Jan.1, 2017.