International Energy Agency head Claude Mandil said Sunday the OPEC should fortify its statement about the readiness to increase oil production
International Energy Agency head Claude Mandil said Sunday the OPEC should fortify its statement about the readiness to increase oil production when it meets next month and give a clear commitment to boosting production capacity.
"More important in my view is to give clear commitments and clear indications on the investments they are willing to make and the ones which will come on stream in the next future," he said.
The Organization of Petroleum Exporting Countries is producing around 30 million barrels a day, above its official production ceiling of 26 million b/d and near its maximum output, with the latter a significant factor in oil prices surging to record highs last month.
The IEA estimates OPEC has spare production capacity of 1 million to 1.5 million b/d.
"What is lacking now and it is one of the reasons why prices are so high is capacity. It's not actual output but it's capacity. Spare capacity in the OPEC countries is very low," said Mandil.
