Crude Price Gains Further Reduce Incentive For Output Freeze

The recent oil price revival has continued unabated despite the 17 April gathering of oil producers in Doha failing to agree to a long mooted output freeze.

Initially the muted response was ascribed to an oil sector strike that started in Kuwait on the same day and which wiped out around 1.7mn b/d of production (MEES, 8 April). With IEA figures indicating global supply will outstrip demand by 1.3mn b/d in Q2 2016, this outage provided a handy explanation as to why Brent prices closed at $42.91/B on Monday 18 April, down just 20¢/B on Friday’s close despite the Doha failure.


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