With $11 trillion needed by 2040, Opec urges producers to hike investments

Indian officials have flagged worries about the outlook for crude supply though oil producers have downplayed a potential shortfall

Opec Secretary-General Mohammad Barkindo on Tuesday urged oil producing companies to increase capacities and invest more to meet future demand as spare oil capacity shrinks worldwide. 

Oil prices have rallied this year on expectations that US sanctions on Iran will strain supplies by lowering shipments from Opec's third-largest oil producer. Brent crude breached four-year highs to reach $86.74 a barrel earlier this month, the highest since 2014.  

"Countries that are holding spare capacity are now shrinking because there has been less investment in exploration," Barkindo said on the sidelines of the IHS CERA conference.

The global oil sector needs about $11 trillion