OPEC’S Balancing Act Becoming Increasingly Precarious

Global oil markets are gradually rebalancing, but the pace is more glacial than envisaged by Opec when it agreed on 30 November to implement a six-month production cut. By Opec’s own metrics it is clear that six months will be insufficient to do the job. Will it opt to extend the deal when it meets next month?

Russia and 10 other non-Opec producers early last December agreed to curb output alongside Opec, with the cuts coming into force from the start of this year. But whilst the aim of rebalancing oil markets and boosting prices was clear, the definition of success was less so. (CONTINUED - 1687 WORDS)

DATA INSIDE THIS ARTICLE

chart Iea Figures Imply Market Rebalancing* Remains On Course For Q4 2017... (Cumulative 2017 Stock Drawdown Mn Barrels)
chart ...But Opec’s Latest Numbers Show The Finish Line Getting Further Away
table IEA Supply & Demand Forecasts April 2017 (Mn B/D)
table OPEC Supply & Demand Forecasts, April 2017 (Mn B/D)
chart Brazil Crude Output (Mn B/D): The Last Three Months Have Been The Highest On Record
chart Russia Cuts Output To 11.05mn B/D In March, Still 50,000 Above End-Q1 Target*
chart Oman Oil* Output (‘000 B/D): Adheres Perfectly To Target Levels In Q1