Report experts: Suspension of OPEC+ deal inevitable

Baku. 15 December. REPORT.AZ/ The non-stopping of the OPEC+ agreement may lead supply to overtake global oil demand in 2018.

Analytical Group of Report News Agency believes, on that occasion global oil reserves will begin to rise again, as a result of which prices will fall sharply. In order to prevent this, the cessation of the OPEC+ agreement will be inevitable.

According to Analytical Group taking into account the forecasts of the International Energy Agency (IEA) yesterday, the oil demand in 2017 will be 97.8 mln. barrels/day and in 2018 - 99.1 mln barrels/day.

In November, global oil supply increased by 0.2 mln. barrels/day compared to a month ago and made 97.8 mln. barrels/day and equated to demand. This is also the highest figure of the year.

IEA predicts non-OPEC countries will increase oil production by 1,6 mln. barrels/day in 2018. The US will have the largest share (870 thousand barrels per day) in growth. As a result, the IEA predicts that the oil supply in the first half of 2018 will exceed demand by 200,000 barrels/day.

Analytical Group of Report News Agency believes, if oil prices not falls in short period of time, investment in the global oil sector will continue to grow, oil production in non-OPEC countries, including the United States, will eventually rise as a result of which global oil reserves will rise that and lead to drop in oil prices for long period of time. 

The experts say, in order to recover balance in the oil market, prices must be set at $ 50-55/barrel urgently.