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Tuesday, 2 May 2017

‘’OPEC Has Failed’’ |

‘’OPEC Has Failed’’ |

"Two months ago we first suggested that OPEC may be fabricating data about its production cuts - and certainly overstating the "success" of the Vienna production cut deal - by looking at the rising Chinese oil imports, and by extension, rising oil deliveries by OPEC nations.

As JPMorgan wrote back in February, the IEA estimated that OPEC crude oil production fell by 1mbd to 32.06mbd in January, suggesting an initial compliance of 90 percent with the output agreement reached at the end of 2016. The latest oil supply details released by Chinese customs on Monday suggest a reduction of supplies was not yet seen by China, the world’s largest oil importer.

In fact, quite the contrary: crude oil shipments from the 11 OPEC nations rose 4 percent from December 2016 - in a time when production was supposed to be declining - to 4.6mbd in January, accounting for 57 percent of China’s total oil imports."

'via Blog this'