June 14, 2017

GOOD THING THEY DON'T DRINK:

Oil From OPEC's Rivals to Exceed Demand Growth in 2018, IEA Says (Grant Smith, 6/14/17, Bloomberg)

The U.S., Brazil, Canada and other producers outside the Organization of Petroleum Exporting Countries will increase output next year by the most in four years, the IEA said. So while the cutbacks should reduce the world's bloated oil inventories to average levels by the time they're scheduled to end next spring, demand for OPEC crude won't be high enough for the group to reverse the curbs without seeing stockpiles rise again.

"Our first outlook for 2018 makes sobering reading for those producers looking to restrain supply," said the Paris-based IEA, which advises most of the world's major economies on energy policy.



OPEC's simple problem. Despite Saudi cuts, it's shipping more oil (Clyde Russell, 6/14/17, Reuters)

While output is no doubt important, for the immediate market impact it's probably better to focus on what the group is actually exporting.

Vessel-tracking and port data in Thomson Reuters Eikon shows that for the first five months of 2017, OPEC exported 25.6 million bpd.

This figure is only shipments by tanker and is filtered to show vessels that have already discharged, are discharging or are en route to their destination.

The shipments for the first five months of this year are slightly higher than the 25.4 million bpd the producer group exported via tankers in the same period in 2016.

Posted by at June 14, 2017 5:21 AM

  

« FIRST HE CAME FOR THE MUSLIMS...: | Main | NOT THAT ANYONE EXPECTED HIM TO UNDERSTAND LAW OR THE CONSTITUTION: »