We lost $1trn globally on defined project, others - OPEC Secretary

I nominated Barkindo for OPEC job because he has the ‘madness’ to work there- Kachikwu

Contrasting this opinion somewhat is Geraldine Sundstrom, managing director and portfolio manager at Pimco Europe, who also told Bloomberg that maintaining $60 oil "will be quite complicated" because of the ability of USA shale producers to resume production so quickly in reaction to price increases caused by cutbacks elsewhere in thew world.

Meanwhile, OPEC appears to be honoring its agreement to cut back its supply but it is unclear if the agreement will be extended beyond the first half of 2017 when it is set to expire.

Barkindo also said the oil industry needed more investments, disclosing that OPEC countries‎ had lost about $1trn so far.

The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Dr. Mohammed Barkindo, monday said the cyclical downturn in crude oil prices which lasted from 2014 to 2016 meant that member countries of the cartel could not earn about $1 trillion of oil revenue.

This is the level the OPEC heavyweight and its Gulf allies - the United Arab Emirates, Kuwait and Qatar - believe would encourage investment in new fields but not lead to a jump in USA shale output, the sources said.

Prices edged higher on February 28 supported by surprisingly high compliance of producers to their reduction quotas even though the market remains under threat of swelling USA production.

"There are some teething challenges in some of the non-OPEC countries because this is the first time that they are being subjected to such a joint monitoring exercise, but the numbers for the month of January - that is the first month in the regime of six months has shown very commendable high level of conformity with about 90 to 94%", he added. We will continue to focus on the level of inventory drawdown to bring the level closer to the five-year industry average.

"In general, something around $60 this year is good".

A non-Gulf source quoted in the report says that the $60 level is important to Saudi Arabia for both investment and its intended stock market float, tipped to be the world's biggest, of Saudi Aramco, the country's state-owned oil company. After dropping below $30 per barrel in early 2016, oil prices since OPEC's agreement surfaced in November have been steady above $50 per barrel.

Oil may struggle to rise beyond about $60 a barrel by the end of 2017, even if OPEC extends its supply cuts and global demand continues to improve, as US shale production ramps up.

Mr Barkindo, who made this known during his official visit to the Nigerian National Petroleum Corporation (NNPC) Tower, Abuja, therefore, said efforts were on top gear by OPEC and non OPEC friends to pull the industry out of its current recession.

The Reuters survey showed Saudi Arabia's output fell slightly in February from an already deep reduction in January taking the total curb achieved to 744,000 bpd, well above the target cut of 486,000 bpd.