Malaysia’s clogged oil shipping lanes underscore failure to reduce glut

Oil industry leaders meeting in Malaysia next week to discuss extending production cuts won’t have to look far for evidence the market remains awash in supply. Just off the coast, in the Straits of Malacca, dozens of tankers loaded with record amounts of unsold fuel show an OPEC-led agreement to cut production in the first half of 2017 has yet to tighten the market. While not on the official agenda at the bi-annual Asia Oil and Gas Conference in Kuala Lumpur from Sunday to Tuesday, the attendance of top oil executives and policy makers including Saudi Arabian energy minister Khalid Al-Falih, ensures the production cut will be a major talking point. Crude prices languishing near 2017 lows are also keeping the over-supply issue to […]

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