Opec crude output in July was 660,000 b/d below the November 2016 peak, but US crude output alone has grown 562,000 b/d over the same period (758,000 b/d including NGLs). The resultant dampening of initial price gains is eroding Opec discipline.
Opec Secretary General Mohammad Barkindo continues to put a positive spin on developments, despite the latest data implying market imbalances will remain until late-2018 at the earliest. During an August visit to Gabon he said “I am optimistic that the market will be rebalanced – and together with the help of Gabon we will restore stability to the market.” (CONTINUED - 1003 WORDS)
