OPEC has expressed concern over the excess amount of oil supplies available in the market as compliance with production targets dropped to 56% last month compared with 80% a year ago.
In OPEC’s last meeting, the organisation decided not to alter the quantity of oil produced by its members.
OPEC was quoted by the BBC as saying that there were no buyers for the excess oil supplies and that the high proportion failing to comply with the production targets was “worrying”.
OPEC secretary general Abdalla Salem El-Badri said there is a risk when excess oil supplies find no buyers because prices will fall, according to the BBC.
“We need a price where we can invest in new capacity, new supply and also cater for the wealth of our people,” El-Badri said.
“Anything below $70 will not permit us to invest.”
He also said that while the global recovery was still fragile, growing demand is expected from China, India and the Middle East.
OPEC accounts for 80% of global crude reserves and nearly 40% of global oil production.