Italy’s ENI CEO, Claudio Descalzi told Bloomberg TV, that the $200b cuts in oil investment in 2015 will likely continue next year, raising concerns that this may create an imbalance between supply and demand.

As a result of the cuts in spending, the industry has deferred exploration work to safeguard dividends over the 65 % collapse in oil prices since June 2014, according to a report issued by the Rystad Energy AS consultancy, projecting a further reduction in 2016 at the level of $70b.

The right price for oil stood at $60b a barrel, which is some $20 above benchmark Brent crude, Descalzi explained in the interview cited by World Oil.