Expect An Extension Of The OPEC Deal

25 Aug 2017   OPEC

The oil market is moving in the right direction towards rebalancing, but all options, including extending the cuts beyond March 2018, are left open, the joint OPEC/non-OPEC committee set up to monitor compliance with the cuts and the state of the oil market said on Thursday. The Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC)—which has been holding meetings in Vienna this week to discuss slipping conformity with the pledges—pointed to a better-than-expected global oil demand growth for this year, and expectations for further growth next year as one of the reasons for optimism. In addition, the OPEC/non-OPEC panel pointed to oil commercial stocks declining in July—and along with it the latest five-year average—compared to the start of this year. The narrowing contango has also contributed to a drop in floating storage since June, the committee noted. OPEC’s de facto leader Saudi Arabia and the leader of the non-OPEC producers, Russia, […]

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