Wednesday 24 July 2019

Global oil market in glut, but not a big enough one for OPEC - Reuters

Global oil market in glut, but not a big enough one for OPEC - Reuters:

OPEC has shifted the goalposts for assessing an overhang in oil inventories, giving the group more room to prolong production cuts, while analysts warn the move will offer a distorted view of market conditions.

Ever since the Organization of the Petroleum Exporting Countries and allies led by Russia - a grouping known as OPEC+ - started curbing oil output two and a half years ago, they have targeted bringing oil in storage in the industrialized world in line with the five-year average.

In OPEC’s view, eliminating the glut in inventories would achieve a balanced oil market.

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