(MENAFN- ProactiveInvestors)Middle East oil cartel Opec may have failed to cut production last week but the region's big exporters are likely to face pressure to do so at some point a rating agency says. Fitch Ratings says countries in the region and in Africa could see their sovereign credit ratings slashed if oil prices stay at their current low levels in 2016. In the last year the agency downgraded five countries where oil revenue made up a large part of general government and external income. It also reduced the outlook of three others - Saudi Arabia Nigeria and the Republic of Congo - to negative from stable. Fitch said: "Low oil prices will continue to weigh on the sovereign credit profiles of major exporters in 2016. "Vulnerability varies but the impact could be felt through negative sovereign rating actions." Opec dismayed those demanding a production cut last week by ending its meeting without agreement on an upper production limit. Analysts pointed to tensions between Saudi Arabia and Iran which disagree on who should cut output in order to boost prices. Iran is set to pump more oil into the market after the lifting of Western sanctions but Riyadh refused to accept demands to cut its own production. The news caused oil prices to slump this week with Brent crude standing 1.3% off at US$40.2 on Tuesday and US light crude 0.7% down at US$37.4. Fitch forecasts Brent to average USD55/bbl next year and USD65/bbl in 2017. Deutsche Bank said there was still investment value in the sector pointing to Royal Dutch Shell (LON:RDSB) and its impending expansion in natural gas with BG Group (LON:BG.). But Deutsche highlighted supply uncertainties and an oil price set to stay in the US$60-US$70 range in 2017. "Our sense is that believe in a recovery or not for now the supply uncertainties mean it is just too early" Deutsche analyst Lucas Herrman said in a note.
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