By shielding biggest buyer Asia from supply cuts, OPEC risks prolonging fuel glut

19 Dec 2016   OPEC

OPEC’s efforts to hold market share in Asia by keeping its customers, which take about two-thirds of its exports, supplied amid wider output cuts could prolong the global fuel glut and frustrate its attempt to bolster prices. Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), will target its supply cuts at refiners in the United States and Europe rather than Asia. Ally Kuwait is following a similar strategy, and OPEC’s second-largest producer Iraq is even raising exports to Asia. “U.S. and European refiners are having January allocations cut from Saudi Arabia, Kuwait and the UAE (United Arab Emirates),” Morgan Stanley said on Monday in a note to clients. This comes as refiners from Japan, […]

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