OPEC's production compliance cuts are not holding up well,
according to latest indications. OPEC oil production continued to rise in June
2017 for the second consecutive month. Compliance by the OPEC cartel declined
to 78%.
Two exempt OPEC members -- Libya and Nigeria -- have been
raising output at a furious pace and it is likely that cuts will now have to be
extended to these countries as well. Moreover, with Iraq targeting a production
rate of 5 mb/d and Iran adding new oilfields, it is also a possibility that the
OPEC pack may just come apart.
Fear of losing market share as a result of the production cuts -- as the cartel looks with consternation as large buyers like India begin contracting for oil parcels from the US -- will be another factor weighing on OPEC in forthcoming discussions.
Fear of losing market share as a result of the production cuts -- as the cartel looks with consternation as large buyers like India begin contracting for oil parcels from the US -- will be another factor weighing on OPEC in forthcoming discussions.
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