On Tuesday, 8th November 2016, Organization of Petroleum Exporting Countries cartel (OPEC) advised the oil industry on the need to step up investments to guarantee sufficient supply as low prices stimulate demand.

“While the recent oil market environment has been one of oversupply, it is vital that the industry ensures that a lack of investments today does not lead to a shortage of supply in the future,” the report said.

Since the price of crude oil fell fromover $100 per barrel in mid-2014 to under $30 at the beginning of this year, oil companies have cut down on investment and cancelled or postponed projects.

However, prices have since recovered to around $45 per barrel, but the market still remains saturated with supplies, and the cartel now expects prices to increase slowly and thus contribute to an additional demand of one million barrels by 2021.

Read more at Punch.