(MENAFN- The Peninsula)
Minister of Energy and Industry H E Dr Mohammed bin Saleh Al Sada has said oil prices need to be higher than $50 a barrel to encourage oil sector investment.
quot;You need a lot of investment to keep up with demand (growth), otherwise there will be a shortage (in supply),quot; Al-Sada said while speaking at the Energy Institute's IP Week conference in London. quot;In my opinion you need a higher price (than $50) to attract more investment, he added.
Al Sada, was presented yesterday with the 'International Oil Diplomacy Man of the Year 2016 Award' at the Energy Institute's International Petroleum Week conference in appreciation of the key role he played through 2016 in securing the Vienna Agreement to cut global oil supply.
Earlier, talking to the reporters in London, Al Sada said it is still too early to say whether oil producers will extend their output reduction agreement when members of the Opec meet in May.
The main focus of that meeting will be global inventories and whether output cuts have managed to lower them toward their five-year average, Al-Sada said.
quot;It is a very important parameter to show whether we are heading towards market stability or not,quot; he said. Adherence to an agreement among 11 Opec members and 11 non-Opec producers to lower output for the first half of this year is running at more than 90 percent among Opec participants, he said.
Among non-Opec producers quot;compliance is estimated at around 50 percent, however, the mechanism of calculating it is not as articulated as Opechellip; I think the adherence maybe more than that,quot; Al-Sada said.
The award conferred on Al Sada is also in recognition of the critical role the State of Qatar has played in leading more than 20 producing countries from around the world, including Russia, Saudi Arabia and Qatar, to find common purpose in cooperation and partnership. 'It is an honour for me to receive this Award, especially as it recognizes the critical role played by the State of Qatar in securing the Vienna Agreements, said Al Sada.
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