Changing output policy will increase supply of sour crudes Huge imbalance between sweet, sour crudes Growing glut of sweet crudes in Atlantic Basin The oil market currently bears a very different look compared to January 2017 when the 1.8 million b/d OPEC/non-OPEC output cuts were first carried out. The sudden pace of this transformation has surprised many, and the 24-producer coalition is now touting a proposal to end these cuts and turn on the taps at their oil fields. Crude supplies on the market have tightened steadily, pushing oil inventories lower, mainly due to strong compliance to the output cuts, which were aided by sharp and unexpected declines in Venezuela, Angola and Mexico, along with strict adherence from Saudi Arabia and Russia. Amid the growing likelihood that OPEC/non-OPEC will agree to raise output when it meets on June 22/23, some immediate impact could be felt on the physical oil […]