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![With the oil glut largely expected to end now that OPEC and non-OPEC nations agree to output cuts, prices are sure to rise at the pump [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/05/209219197_8-e1463468342807.jpg)
With the oil glut largely expected to end now that OPEC and non-OPEC nations agree to output cuts, prices are sure to rise at the pump [Xinhua]
The report released today predicts that “In 2017, world oil demand growth is seen at 1.15 million barrels a day” partly due to an improving economic landscape.
“The demand for OPEC crude in 2017 is expected to stand at 32.6 mb/d, which is slightly higher than the 32.5 mb/d level referred to in the most recent OPEC Ministerial Conference. This, combined with the joint cooperation with a number of non-OPEC countries in adjusting production by around 0.6 mb/d, will accelerate the reduction of global inventories and bring forward the rebalancing of the oil market to the second half of 2017,” the report said.
This comes as Ghadir Ghiafeh, vice chairman of the Iran-Russia Chamber of Commerce, praised Russia for its efforts in persuading non-OPEC members to cut their output.
“It’s very useful for both of them [OPEC and non-OPEC members],” Ghiafeh told Russian news network RT.
“In the future, I think, the price will increase up to 60-65 dollars,” he added.
At press time, international Brent Crude retreated 1.11 per cent to $55.10 a barrel; US benchmark West Texas Intermediate fell 1.47 per cent to $52.20 a barrel.
Prices had reached beyond $56 a barrel immediately following an announcement by non-OPEC members to cut production by 558,000 barrels a day. This came following an OPEC cut of 1.2 million barrels a day.
Russia, the world’s largest oil producers, is to cut 300,000 barrels a day.
OPEC heavyweight Saudi Arabia has said it will cut output even further.
The BRICS Post with inputs from Agencies
