Expert: Oil prices to rise without OPEC's decision

Baku. 8 November. REPORT.AZ/ The UAE's Energy Minister Suhail bin Mohammed Faraj Al Mazroui on Monday said the global oil supply glut was almost gone.

Report informs citing the Investing.com, addressing the 19th Abu Dhabi International Petroleum Exhibition and Conference (Adipec) in Abu Dhabi, Al Mazroui insisted the oil prices would begin to rise again, though he acknowledged it "has been a bit long." "The glut is almost gone ... I think we are at the bottom of this cycle."

The OPEC secretary-general, Mohammed Barkindo, said consultations between OPEC and non-OPEC producers would continue in coming days and weeks, and he believed it was vital that producers in both camps came together.

The OPEC Secretary General, Mohammed Barkindo, said OPEC pledged after a meeting in Algiers on September 29 to cut production for the first time in eight years on the back of a sustained depression in global prices.

"The agreement underlined the organisation's commitment to sustainability of oil markets," Barkindo said.

Speaking on the sidelines of the forum, Barkindo said major non-OPEC exporter Russia is "on board" with the group's agreement to limit production.In October, OPEC oil output increased by 0.5%, compared with September and reached 34.02 mln bbl / day. Oil production in Russia increased by 2.2% since the beginning of the year and reached 11.22 mln barrels/day.

Senior analyst at Promsvyazbank Ekaterina Krylova said although demand continues to exceed supply in first 9 months of 2016, this is only 0.4 mln barrels / day. Only in third quarter demand for oil showed 1.3% growth compared to the third quarter.

According to the analyst, the volume of investments in US shale oil production began to decline. Though, global oil demand continues to show the soft pace: "The oil market will be balanced until the end of the year, the deficit is likely to occur since 2017".

E. Krylova believes, even if positive results will not be achieved from OPEC summit in Vienna on November 30 it will not have such a fundamental impact on the oil market: "The oil market is moving towards the balance".