The decline in global crude oil prices may not abate until 2017 as the oil market is expected to rebalance within two years, the Secretary-General of the Organisation of Petroleum Exporting Countries, Abdalla el-Badri, has said.

Badri, who spoke in London on Tuesday, was said to have expressed concern about the impact of low oil prices on investment and the consequences for future supply, but insisted that rebalancing the world oil markets was the responsibility of all producers and not a burden to be borne by OPEC alone.

He was quoted by Platts as predicting that oil prices would rise from current six-year lows of below $50 per barrel in the next few months, although he did not say how much improvement he expected.

“We have an overhang of 200 million [barrels] in the market. All of us should work together, OPEC and non-OPEC…all of us have to work together to see how we can get rid of this 200 million barrel overhang,” Badri told the annual Oil & Money conference in London.

“I’m really disturbed,” he said, referring to the wave of investment cuts announced by oil companies this year in response to the price plunge. “You will see the result. This means less supply and higher prices in the future.”

Talking to reporters later, Badri said overall global investment in oil could drop by $130bn this year from $650bn in 2014.

Badri also appeared to offer some comfort to those OPEC members that had been unhappy about the group’s current laissez-faire strategy of allowing prices to fall to levels that could force high-cost non-OPEC production out of the market.

“This will take a year, maybe a year and a half,” he said.

He noted that non-OPEC supply growth was slowing and was expected to be “zero” next year, while the call on OPEC crude was rising.

“So, we see that there is an improvement in the market,” he said, “but how much the price will improve we don’t know.”

Badri told reporters he expected Iran’s full return to the market to be discussed at OPEC’s next meeting on December 4 in Vienna.

Iran has said it expects to boost its crude exports by one million barrels per day within six months of the lifting of sanctions.

Badri was asked whether any talks were planned between OPEC and a number of independent producers.

He said there had been a meeting of technical experts in May and that he suggested October 21 for a follow-up meeting, again at expert level.

A date had still to be set, he said, emphasising that this meeting would not be at the ministerial level.

Oil prices have almost halved in the last year on oversupply in a drop that deepened after OPEC in 2014 changed strategy to protect market share against higher-cost producers, rather than cut output to prop up prices as it had done in the past.

“This situation may not stay long, more than two years,” the OPEC chief said in response to a question on how long the market would take to rebalance.

OPEC expects global demand for its crude, under pressure in recent years because of rising supplies from outside the group, to rise to 30.3 million barrels per day in 2016, about one million bpd more than in 2015.

“We will see the effect of the cut on production,” Badri said. “This will mean less supply in the near future.”

“We are seeing now a low price. After a few months, we will not see this. We will see a higher price again.”

http://www.punchng.com/business/business-economy/oil-price-fall-may-continue-till-2017-opec/ lalasticlala

Good I am so happ about this news.

This should gladden the hearts of the enemies within after the heartache Amaechi's name on the list caused them..

"APC will use this to give excuse till 2017". Quote me anywhere

Oh my God! With this directionless APC in power with their old and analogue team, we are in for it. They took 4 good months just to write 21 names, no capital development going on anywhere, businesses are closing shops, no salaries etc. God why now? Why why

Kk

stanech:
Good I am so happ about this news.

It won't stop Nigeria from being great again.,

Before the fall of oil prices, what the Nation was making, was it being felt by the average Nigerian ??

Was it not your daylight armed robbers HEROES & HEROINEs that were cornering it all for themselves & immediate families only.?

We would manage whatever comes with prudence & good faith...there is hope, we will not die before 2017, meanwhile you have 4yrs to be sad and miserable.....

As for that El dorado you lots screaming online for everyday, IT WILL NOT HAPPEN.

Nigeria will rise & be great again..

Pmb-2023

I guess some people won't tag Diezini Allyson Maduekwe with this.

We are diversifying so no cause for alarm abi Uncle Buhari?

Fellow Nairalanders, please check out our incredible offer below

I would stabilise oil price "buhari "

It is a lie!!!! Buhari will stabilize world oil price as soon as he is confirmed as minister of petroleum.

Just blame it on Jonathan as usual and some gullible ones will believe.

A bad omen for Nigeria.
May be our leaders will wake up and diversify our economy for the good of our nation.
Nigeria is blessed with abundant human and natural resources ...

we have other lucrative sectors but our government chose to fight over biafran oil. it is well.

I am not bothered with these stories......... pls tell me the pump price/litre in Nigeria


shikenah!

Buhari is breaking all his campaign promises SO FAST! ?

;DDis is realy change in action

modath:



It won't stop Nigeria from being great again.,

Before the fall of oil prices, what the Nation was making, was it being felt by the average Nigerian ?? Was it not your daylight armed robbers HEROES & HEROINEs that were cornering it all for themselves.

We would manage whatever comes with prudence & good faith...there is hope, we will not die before 2017, meanwhile you have 4yrs to be sad and miserable.....

As for that El dorado you lots screaming online for everyday, IT WILL NOT HAPPEN.

Nigeria will rise & be great again..

Pmb-2023

That's exactly my point. We need it to go down

modath:


This should gladden the hearts of the enemies within after the heartache Amaechi's name on the list caused them..

respect your self

time to swerve to the aeronautic world...many of us have refused to look beyond oil and gas....let me diversify as an individual...

xreal:
I am not bothered with these stories......... pls tell me the pump price/litre in Nigeria


shikenah!

it is still #87 per liter

Love this news! We will be forced to diversify, diversifications that would open up many frontiers, create more opportunities for Nigerians.

ikombe:
respect your self

We know ourselves nah...

Me I'm praying for 9ja to progress so my prosperity will increase, some are praying for disaster ONLY so they can feel cool about not supporting a govt's emergence...

Human being & upside down reasoning..

Then we look for an alternative way to making money for the country, stop exporting oil till the price decides to go up

Our prayers have been answered. Let the oil price crumble.

ikombe:
it is still #87 per liter

thank you sir.

crosses legs and sticks eyes to Channels TV awaiting the headline pump price falls to 50 naira per litre

mediachirps:
Our prayers have been answered. Let the oil price crumble.

God does not answer such prayers...

& make sure to read well, its increment the analysis is about its already below $50

we pray ooo.....

That's sad. Hopefully, it picks up before 2017

Hmm..

Thought Buhari's body odour was reviwing the price to $200 a barrel.

Is he now using Deodorant...

Even before the so-called shale oil technology ,oil price has always been destined to fall due to the constant research for clean,bio and renewable energy.
Add lifting of sanctions on Iranian oil...and you see supply exceeding demand in the oil market.

so dear Nigeria,stop praying for a miracle and diversify the economy.Oh i forgot,we have to fight corruption for at least 20 years first