Oil market volatility has started to decline and investment in the industry has started to improve as a result of OPECs production cut.
The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) noted at its meeting in St. Petersburg that the oil market is making 'steady and significant progress towards rebalancing'. It found that the continued strengthening of global recovery is underway.
According to a report by the Joint OPEC-Non-OPEC Technical Committee, oil demand is expected to increase significantly in the second half of 2017, compared to the first half, with growth reaching 2 million barrels per day.
Additionally, between January and June 2017, the participating producing countries reduced their production by an estimated volume of 351 million barrels.
The OPEC commercial oil stocks overhang has also fallen by 90 million barrels.
However, the JMMC noted that despite the successes, more can still be improved by some participating producing countries.
The JMMC noted that once production levels stabilise in Libya and Nigeria, participating producing countries should further cooperate in 'a manner that contributes to the stabilisation of the market'.
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