Opec Shows No Sign Of Cutting Ahead Of November Meeting

Opec discussions on cutting output at the looming 30 November meeting in Vienna will take place with the group pumping at record highs. October’s 33.84mn b/d smashed September’s previous record by a mammoth 420,000 b/d.

Output is 840,000 b/d above the upper limit of the organization’s proposed 32.5-33mn b/d target range: it’s difficult to see where such sizeable cuts can come from. Of course, Opec is not bound by the outline of the Algiers accord, it’s not 33mn b/d or bust. Having ramped up output through five consecutive monthly rises (including four consecutive records), would markets seize on a higher range – perhaps 33-33.5mn b/d – as a sufficient compromise? (CONTINUED - 1095 WORDS)


table OPEC Wellhead Production, October 2016 (Mn B/D, Mees Estimates)
table IEA Supply & Demand Forecasts November 2016 (Mn B/D)
table OPEC Supply & Demand Forecasts, November 2016 (Mn B/D)