Opec-led production curbs since the start of 2017 have so far failed to bring about the planned market rebalancing. They look likely to be extended to at least the end of 2018. But while global oil inventories remain well oversupplied, this year’s price gains are set to boost Opec revenues by around 23% from last year’s nadir.
Opec agreed to cut production from January by 1.2mn b/d in concert with 10 non-Opec producers who would cut a further 600,000 b/d. But to call it an output cut is a misnomer, as major producers had ramped up production in late 2016 to secure high benchmarks from which to cut. The upshot is that Opec production over the first nine months of the year averaged around 4.2% higher than in 2016. (CONTINUED - 913 WORDS)
