Crude prices could spike sharply in a few years unless the oil industry starts soon to invest in major projects again, the International Energy Agency warned on Monday.
Under the deal between OPEC and 11 non-OPEC nations to cut crude oil supply by nearly 1.8 million bpd between January and June, Azerbaijan has pledged to cut 35,000 bpd out of non-OPEC's 558,000 bpd share.
Oil prices, however, have been unusually stable since producers agreed in November to reduce the oversupply that has weighed on prices for more than two years, with both Brent and US crude locked in $5 ranges.
Oil prices fell in Asian trade on Monday, wiping out some of the gains of the previous session amid worries lower growth targets in China could cut oil demand and ongoing concern over Russia's compliance with a global deal to cut oil output.
Novak gave a high rating to the outcome of talks with Saudi Arabia's energy minister. "We expect this upswing in production to continue throughout 2017 due to the rise in rig activity, increased capital expenditure budgets, and the roughly two- to four-month lag between spudding shale wells and production", the agency noted.
"It's premature to talk about extending the agreement", Russian oil minister Alexander Novak told reporters. One of the biggest questions in the oil market is how quickly and how much shale producers will boost output.
After hitting a record high last week, hedge funds reduced wagers that U.S.
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The country's energy ministry said today that a letter it had received from the Joint Monitoring Committee praised the country for complying "214 percent" with its share of cuts.
Oil's resurgence isn't confined to America.
In January Azerbaijan produced 793,900 barrels of oil per day.
US crude futures closed on Friday at $53.33 per barrel.
"And unless investments globally rebound sharply, a new period of price volatility looms on the horizon", he said.
Iraq's Luaibi is among a slew of speakers at the week-long industry gathering, with the country pledged to cut production by 210,000 barrels per day (bpd) under the deal to trim almost 1.8 million bpd from the market.
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