Speaking to Shana, Mehran Amir Mo'eini, an oil market expert with the Institute for International Energy Studies (IIES), said members of the Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC crude oil suppliers will need to honor the deal OPEC members struck in Vienna on Wednesday if they wish to rebalance the market and have the prices increased.
He predicted that the deal OPEC members reached in Vienna last week can hike the prices up to $50 or even $60 per barrel.
"All the OPEC members should cooperate and honor the recent commitments in order to rebalance and adjust the market because dishonoring the deal would have no impact on the market and the prices; it would even make things harder for the suppliers," he added.
The senior expert said OPEC by his recent decision showed it is still influential in the global oil market.
In the past two years the body has had no impact on the market but this decision will display the OPEC as a key player with a determining role in the market, he added.
"The OPEC decision to cut production will guarantee further investments in the industry and raised oil prices," Amir Mo'eini added.
After months of talks and rounds of meetings, OPEC finally sealed a deal on November 30 to cut production by about 1.2 million barrels per day (bpd), or about 4.5 percent of current production, to 32.5 million bpd.
Two months ago in Algiers an agreement was outlined based on which the OPEC and non-members were obliged to cut their productions in order to stabilize the market.
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