OPEC Says Market is Well Supplied

OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group’s secretary-general said on Thursday, suggesting producers are in no rush to expand a June agreement that raises output.


West Texas Intermediate graph

Oil prices have rallied this year on expectations that U.S. sanctions on Iran will strain supplies by lowering shipments from OPEC’s third-largest oil producer. Brent crude LCOc1 last week reached $86.74, the highest since 2014.

OPEC Secretary-General Mohammad Barkindo, speaking at the Oil & Money conference in London, said there were many non-fundamental factors influencing the oil market that were beyond oil producers’ control.

“The market has been reacting to perceptions of a possible supply shortage. The market remains well supplied,” he told a briefing.

“The projections for 2019 clearly show a possible rebuild of stocks,” he said of the supply and demand balance for next year.

via Reuters

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