OPEC Urges Oil Producers to Increase Investment amid Shrinking Spare Oil Capacity

India is the world’s third biggest oil consumer and importer

OPEC Secretary-General Mohammad Barkindo on Tuesday said global spare oil capacity was shrinking.

In the third quarter of 2018, the total global supply of oil reached 100.3 million barrels per day and production of "black gold" and hydrocarbons have reached a record high. Brent crude breached four year highs to reach $86.74 a barrel earlier this month, the highest since 2014.

The global oil sector needs about $11 trillion in investment to meet future oil needs in the period up to 2040, Barkindo said, adding that import-dependent countries such as India were concerned about future oil supply.

Barkindo, asked whether Trump's criticism of OPEC was unfair, said: "The market is now being largely driven by decisions taken elsewhere - outside OPEC, outside non-OPEC". According to experts, States that are not members of OPEC, will increase oil production, and next year they will rise by another 1.7 million barrels daily.

"India is projected to see the largest additional oil demand - 3.7% per annum - and the fastest growth in the period to 2040", said Barkindo.

In June, OPEC and non-OPEC oil producers made a decision to stick to 100 percent conformity of predetermined oil production cap, thus allowing an increase of oil production as the deal participants have reduced the output more than required in the past months.

Gazprom Neft could potentially lift its oil production by a further 20,000 to 30,000 barrels per day (bpd) this year and add another 50,000 bpd next year, Yakovlev said.

OPEC and its allies "are ready and willing to continue to make sure that the market remains well supplied". But there are big uncertainties regarding the end of the year with regards to Iran and Venezuela.

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