Oil Veteran Says OPEC Needs Year to Pull Off Elusive Mission

25 Apr 2017   OPEC

Production cuts need to be extended through 1H 2018: Fesharaki Onshore oil inventories are still rising, FGE founder says OPEC needs a year more to accomplish what’s at the moment proving to be mission impossible, according to a veteran oil analyst. Saudi Arabian oil minister Khalid Al-Falih acknowledged last week that the group and its allies, after three months of limiting output, have failed to hit their target of eroding oil inventories below the five-year historical average. The reductions need to be prolonged to not only until the end of 2017, but also extended through the first half of next year for the goal to be met, said Fereidun Fesharaki, the head of industry consultant FGE. While the Organization of Petroleum Exporting Countries and its partners began cutting output in January as part of a six-month deal, International Energy Agency data show inventories rose during the first quarter in […]

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