OPEC/Non-OPEC Overproduce 470,000 Bpd Above Commitment

12 Aug 2017   OPEC

Stronger-than-expected oil demand growth may be tilting the market to rebalancing, but confidence in any sustained rebalancing is suppressed on the back of OPEC and non-OPEC producers’ signals of weakening resolve, the International Energy Agency (IEA) said in its August report on Friday. Together, the 22 signatories to the oil output cut deal are producing about 470,000 bpd above the combined level they have committed to keep, according to the IEA, so promises of increased demand and reaffirmations of signatories to the production cuts are falling on mostly deaf ears. “There would be more confidence that re-balancing is here to stay if some producers party to the output agreements were not, just as they are gaining the upper hand, showing signs of weakening their resolve,” the international agency noted. At the beginning of this week, OPEC held a meeting with some of the producers and cited its members Iraq […]

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