OPEC’s “Whatever It Takes” Is An Empty Promise

11 Jul 2017   OPEC

High demand for air conditioning and fuel for road trips make summer the best time for the Organization of Petroleum Exporting Countries (OPEC) to cut production or exports to end or lessen the supply glut that has plagued oil markets for three years. Current oil prices, however, indicate that no one is holding their breath for OPEC to follow through with its “whatever it takes” promise to draw down supply. The Energy Information Administration (EIA) predicted last month that gasoline consumption in the U.S. during the summer months will peak at 9.5 million bpd—up 20,000 bpd from 2016, a record high year for fuel demand, in what would be a prime time for OPEC to implement additional measures. But de-facto bloc leader Saudi Arabia is expected to have increased exports in June—after two months of decline. True, it’s current production level is still below the 10.06 million bpd quota […]

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