Azerbaijan downs oil production under OPEC agreement

Other countries joined in, pushing the total to almost 1.8 million barrels.

Oil investment globally was $450 billion United States in 2016.

The IEA has pegged Canadian production growth at around 800,000 barrels per day by 2022, putting total production at 5.3 million bpd, up from 4.5 million bpd in 2016.

Demand for oil, he said, will continue to grow steadily in coming decades in places like China, India and Malaysia. Aramco wants to invest in long development cycles, but the US shale comeback creates a problem, due to its short ramp-up time.

Saudi Arabia is the world's biggest producer and is carrying the heaviest load of production cuts.

The price Venezuela receives for its mix of medium and heavy oil slipped slightly during the week ending March 3 as traders sifted through conflicting data on storage builds and await a second month of figures on compliance with an OPEC production cut that started in January.

A large potential supply deficit may take hold around 2020, "as demand growth is consistently forecast to outstrip projected increases in global oil supplies", he said.

At a brief news conference at CERAWeek by IHS Markit in Houston, Falih and ministers from Russia, Iraq, Mexico and OPEC Secretary General Barkindo said that 1.5 million b/d have already been withdrawn from the global market as a result of the deal.

The key takeaway from the IEA report is the "looming imbalance", Matt Parry, IEA senior oil economist, told MarketWatch by email from Paris. Still, some went bust, and layoffs swept the oil patch.

"Our production is increasing, but our exports are at the level of the OPEC agreement", the minister said.

The minister also said Saudi Aramco's anticipated initial public offering (IPO), given a valuation of as high as $2tn by some, would be a great addition to the global market.

The discussions with hedge funds come as their role in USA energy has grown.

Mr Falih said the cuts were taking effect more slowly than he expected and added the agreement was helping sow "green shoots" in the industry, mainly in the US.

"The green shoots are definitely here in the US, and maybe they are growing too fast", al-Falih said in reference to his American shale rivals.

  • Zachary Reyes