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Oil market to balance even with increased drilling - Qatar minister

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Reuters VIENNA
Last Updated : Jan 22 2017 | 6:49 PM IST

VIENNA (Reuters) - Qatar Energy Minister Mohammed Al-Sada said on Sunday that even with an increase in drilling rigs, the oil market is likely to reach a balance as producers implement agreed output cuts.

"I think with increasing demand eventually shale oil will all be catered for," Al-Sada told reporters.

Al-Sada said demand is healthy, with expected growth in line with last year's rise of around 1.2 million barrels per day (bpd).

OPEC and non-OPEC producers have agreed to lower output by almost 1.8 million bpd in hopes of reducing oversupply and supporting prices.

However, higher prices could encourage U.S. shale operators to increase drilling.

(Reporting by Rania El Gamal; editing by Jason Neely)

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First Published: Jan 22 2017 | 6:37 PM IST

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