Organization of petrolium exporting countries also agreed to cut output 1.2 million bpd to 32.5 Million bpd for the next six month of this 2017 year even some addition out put cut 558,000 bpd by non opec countries like Russion, mexico and oman.
As I believe
be rebalance in
mid 2017 because some countries cut output but still It's in
doubt and Oil price will be volatile till
mid 2017. As per Fatih Birol, Executive Director of IEA said yesterday in Abu Dhabi this time we are entering in
period of much more volatility or maybe this is not
good time for
market to rebalance.
Oil Price also fall 3 percentage on last Friday and It's still on doubt with opec cut sentiment by the concern worlds largest 2nd oil consumer China, after it reported oil fall over all exports since 2009.
As per Birol Oil signals will be Higher with OPEC
direction but It's depend on US and If global supply will increase then price could be weaker in global market also US share go back to increasing production.
OPEC and the independent producers are cutting supplies to remove a global glut and prop up prices, which at around $56 a barrel are half their level of mid-2014, hurting the revenue of exporting nations.
Birol said his main concern now was lack of investment in new oil supplies after low prices over the past two years forced the shutdown of many projects across the world.
"This year, if there are no major investments coming we may well see in a few years from now significant supply-demand gap with serious implications on the market."