ABU DHABI, 12th April, 2017 (WAM) -- World oil market is expected to see a partial recovery in 2017 and 2018 in light of the OPEC agreement to adjust oil production by 1.2 million barrels per day, and the non-OPEC oil production countries to adjust their output by 0.6 million barrels per day in the first half of 2017, according to the Arab Economic Outlook, AEO, released by the Abu Dhabi-based Arab Monetary Fund, AMF, on Wednesday.
''The commitment to this agreement will help to bring the oil market balance in 2017,'' the AEO said.
In the meantime, oil demand is expected to increase by 1.2 million barrel per day this year, according to OPEC estimates. These developments will support oil price increases in 2017 and 2018, compared to levels recorded in 2016 which reached $40.8 per barrel for the OPEC price basket.
''However, the expected increase in shale oil production due to the price gains will limit the upward trend of oil prices during 2017 and 2018,'' the report said.