OPEC’s Premature Victory Lap

25 Sep 2017   OPEC

OPEC met on Friday to review the progress of their work over the past 9 months, assessing whether or not they should extend their current production cuts beyond the March 2018 expiration date. OPEC gathered in Vienna at a time when the oil market arguably looks tighter than it has in a very long time. Demand is growing at a rapid clip – increasing at a 1.6 million-barrel-per-day rate this year – global supply fell in August, and inventories have drained at a much swifter pace in recent months. Kuwait’s oil minister Issam Almarzooq said that global crude and refined product stockpiles have “massively drained.” “We are on the right track and there is now more light at the end of the tunnel,” Almarzooq said at the start of the meeting on Friday. “This is not the time to take our foot off the accelerator.” Part of the reason […]

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