The Organization of the Petroleum Exporting Countries (Opec) on Wednesday said it expected some non-cartel producers to ramp up production next year, encouraged by oil prices which Opec has fought to drive higher with a recent output cut deal. Brazil and Canada — which did not sign the reduction agreement — and Kazakhstan are expected to be the main contributors to the non-Opec supply growth, Opec said in its December market report.
World prices have surged since 11 countries agreed on Saturday to cut their output, teaming with the Opec cartel to end a global oil glut and reverse a dramatic fall in income. Russia was among the 11 non-Opec producers, but the US, where some shale oil producers are expected to come back onstream as their production becomes profitable again, was not. Opec said, however, that output rises by some countries would not stop the market from rebalancing in the second half of next year, after a long, glut due to oversupply.
The joint action in curbing supply is expected to help "accelerate the reduction of global inventories and bring forward the rebalancing of the oil market to the second half of 2017”, the report said.