| Opec needs to increase production by 4.1mn barrels per day (mbpd) in the next five years to “balance the market”, according to Bank of America Merrill Lynch (BAML). Moreover, the structural shift toward a lower price environment will have “profound and long-lasting consequences” for non-Opec production, BAML said in its latest report.
Highlighting that with the US, the only country able to ramp up its production materially in non-Opec by 2020, it said Opec (Organisation of Petroleum Exporting Countries) may have to provide the incremental barrels as demand will grow by 5.9 mbpd in 2015-20. “With the market oversupply of 1.8 mbpd in 2015, we estimate that Opec needs to increase production by 4.1 mbpd in the next five years to balance the market”, it said...............................................Full Article: Source
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