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Opec opted to extend its output curbs to March 2018 when it met in Vienna on 25 May alongside ten non-Opec producers in its efforts to rebalance the market. But whether the strategy is working in the face of rebounding US shale output is up for debate.
The original six-month Opec/non-Opec cut agreement had been set to expire on 1 July. It was intended to take around 1.8mn b/d of supply away from the market – 1.2mn b/d from Opec and 558,000 b/d from non-Opec partners (MEES, 16 December 2016).
But nearly five months after the deal kicked in on 1 January global inventories appear as bloated as ever – not helped by buoyant early-2017 arrivals in consumer countries as a result of Opec producing flat-out right up to the end-2016 ‘deadline’. (CONTINUED - 2519 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 Ever Further Away|
|table||OPEC Wellhead Production, April 2017 (Mn B/D, Mees Estimates)|
|table||OPEC^ 2017 Oil Export Revenues Set To Fall Short Of 2015 Levels ($Bn)|