IEA: Market Shows Waning Confidence In Oil Rebalancing

14 Jul 2017   IEA, Prices

The rebalancing of the oil market is taking too long, the International Energy Agency (IEA) said in its Oil Market Report on Thursday. Since the record net long position that money managers built in February on hopes that OPEC’s cuts would rebalance the market, investors’—and industry bodies’—confidence has been waning. “Brent prices have closed below $50/bbl each day since early June and few investors expect a recovery anytime soon,” the IEA said. Since the start of the production cuts, some issues have been popping up each month to raise doubts about the rate at which the market is rebalancing, the agency noted, adding: “This month, there are two hitches: a dramatic recovery in oil production from Libya and Nigeria and a lower rate of compliance by OPEC with its own output agreement.” Libya and Nigeria contributed the most to the 393,000-bpd increase in the cartel’s total crude output in […]

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