This week’s monthly reports from the IEA and Opec show that the Opec+ coalition will likely have to cut for longer and deeper than last week’s agreement mandated in order to avoid global inventory gains in 2019.
The good news for the grouping is that involuntary cuts from Iran and Venezuela will add to those agreed as part of last week’s output deal, while volatility in Libya will likely periodically cause substantial outages. Indeed, participants in the cuts have a delicate path to tread given that outages from all three could easily plunge the market into a shortage in the first half of the year. (CONTINUED - 984 WORDS)
