{"id":4086,"date":"2019-08-29T22:58:23","date_gmt":"2019-08-29T22:58:23","guid":{"rendered":"http:\/\/euromenaenergy.com\/?p=4086"},"modified":"2019-08-29T22:58:23","modified_gmt":"2019-08-29T22:58:23","slug":"opec-expects-to-drain-oil-stocks-as-it-makes-supersized-cut","status":"publish","type":"post","link":"https:\/\/emimer.com\/?p=4086","title":{"rendered":"Opec+ expects to drain oil stocks as it makes supersized cut"},"content":{"rendered":"
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Opec and its allies expect to deplete the global surplus in oil stockpiles sharply as demand holds up and the coalition cuts production by far more than initially planned.
\nSaudi Arabia, Russia and other producers in the Opec+ alliance have slashed crude output this year to shrink the glut amid faltering economic growth and soaring US shale output. Results have been mixed, with oil prices down more than 20% from this year\u2019s peak, trading at about $59 a barrel in London.
\nIn response, Saudi has reduced output by far more than pledged under the terms of the deal, and the coalition\u2019s overall implementation rate last month was 59% above target, according to a statement posted on its website yesterday. That means the alliance cut supplies by about 1.9mn barrels a day.
\nOpec signaled that the deeper-than-anticipated cutbacks had been necessary because of the extreme upheaval in the global economy.
\n\u201cThis high level of overall conformity has offset uncertainty in the market due to ongoing economic-growth worries,\u201d according to the statement from the Joint Ministerial Monitoring Committee, a body set up by Opec and its allies to oversee implementation of their strategy.
\n\u201cAlong with healthy oil demand,\u201d the supply restraints have \u201carrested global oil-inventories growth and should lead to significant draws in the second half of the year,\u201d the committee said.
\nWorld financial markets have been buffeted this year as the US and China become ever more entangled in a trade dispute that\u2019s weighing on growth in both nations, the two biggest oil consumers.
\nCollectively, the 24 countries in the Opec+ coalition \u2014 comprising the 14 nations of the Organisation of Petroleum Exporting Countries and 10 non-members \u2014 pump about half of the world\u2019s oil.
\nThe burden for going the extra mile, however, has rested almost entirely on Saudi Arabia, the biggest Opec member. The kingdom reported that it lowered output to 9.58mn barrels a day in July, which means it\u2019s cutting more than twice as much as agreed.
\nThe JMMC will meet to review the strategy on September 12 in Abu Dhabi, and then the full coalition will gather in December to consider any measures for next year.
\nThe committee said that forecasts by major institutions are for \u201crobust\u201d oil-market fundamentals for the rest of this year and 2020.
\nWhile it is the case that leading organisations like the International Energy Agency see world oil demand continuing to grow next year in line with recent trends, expectations for another surge in supply create a fragile outlook.
\nBoth the IEA and Opec itself expect that oil supplies, driven by the US, will expand by roughly twice as much as the growth in consumption next year.<\/p>\n<\/div>\n

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Opec and its allies expect to deplete the global surplus in oil stockpiles sharply as demand holds up and the coalition cuts production by far more than initially planned. Saudi Arabia, Russia…<\/p>\n","protected":false},"author":1,"featured_media":4106,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[46,48,57,68,76,77,82,86,87,90,96,99,103,107,109,111,113,137,139,146,148,160,174,183,184,201,202,209,222,230,232,233,244,246,249,256,262,263,267,277,279,280,285,288],"class_list":["post-4086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-aramco","tag-athens","tag-baroudi","tag-carbon","tag-climate","tag-climate-change","tag-co2","tag-cyprus","tag-decarbonising","tag-democracy","tag-doha","tag-eastmed","tag-egypt","tag-embargo","tag-emissions","tag-energy","tag-energy-peace","tag-gas","tag-gazprom","tag-greece","tag-greenenergy","tag-international-maritime-disputes","tag-lebanon","tag-maritime-boundaries-east-mediterranean","tag-maritime-disputes","tag-offshore","tag-oil","tag-opec","tag-pollution","tag-poverty-alleviation","tag-putin","tag-qatar","tag-rosneft","tag-roudi","tag-russia","tag-saudi","tag-solar","tag-solar-power","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-turkey","tag-unclos","tag-usa"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/4086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4086"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/4086\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/4106"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}