Markets have held steady so far this year despite fears of oversupply after the Opec+ ‘Group of Eight’ agreed in April to start the gradual tapering of 2.2mn b/d of output. Oil prices have been rangebound even as Opec+ has been increasing supplies, to be followed by a further 548,000 b/d in August before a final 547,000 b/d in September (MEES, 11 July).
The reason? Some of that production has already made its way to the market from producers exceeding their quotas while global demand has been stronger than expected despite uncertainties arising from threatened US tariffs on some of the world’s largest economies. (CONTINUED - 1141 WORDS)
