OPEC expected to deliver only half of target production cut: Kemp

7 Dec 2016   OPEC

OPEC will achieve some but not all of the production cuts the organization agreed last month, according to an informal survey of energy professionals conducted after the agreement was announced. Most energy professionals expect OPEC output will decline to around 33.0 million barrels per day in January 2017, down from 33.6 million bpd in October but well above the deal’s target of 32.5 million bpd. Most of the 260 respondents to the survey think the organization will succeed in cutting output, but on average by only 600,000 bpd, or half its stated target of 1.2 million bpd. Less than 8 percent thought OPEC would achieve its target in full. More than twice as many thought output would stay the same or rise ( tmsnrt.rs/2gfFVoC ). Scepticism about OPEC’s ability to meet its target underlines the challenge facing the organization as it tries to reduce global oil stocks and raise […]

Comments are closed.