You are here: Home » Reuters » News
Business Standard

OPEC says oil stocks keep rising despite supply cut deal

Reuters  |  LONDON 

(Reuters) - said on Tuesday inventories had continued to rise despite the start of a global deal to cut supply and raised its forecast of production in 2017 from outside the group, suggesting complications in the effort to clear a supply glut.

The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-producers agreed to cut half as much.

But in its monthly report said stocks in industrialised nations rose in January to stand 278 million barrels above the five-year average, of which the surplus in crude was 209 million barrels and the rest products.

"Despite the supply adjustment, stocks have continued to rise, not just in the U.S., but also in Europe," said in the report.

"Nevertheless, prices have undoubtedly been provided a floor by the production accords."

In the report, pointed to a increase in compliance by its members with their deal to cut output from Jan. 1.

Supply from the 11 members with production targets under the deal fell to 29.681 million bpd last month, according to figures from secondary sources that uses to monitor its output.

That means has complied by more than 100 percent with its plan to lower output for those nations to 29.804 million bpd, according to a calculation. didn't give a compliance figure in the report.

But the report revised up its estimate of supply from producers outside this year, as higher prices following the and non-cut help spur a revival in U.S. shale drilling.

Production outside is now expected to rise by 400,000 barrels per day (bpd), 160,000 more than previously thought. U.S. output in 2017 was revised up by 100,000 bpd.

While the secondary sources said Saudi output fell in February, Saudi Arabia reported to that it increased.

(Reporting by Alex Lawler, editing by Louise Heavens and David Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

OPEC says oil stocks keep rising despite supply cut deal

LONDON (Reuters) - OPEC said on Tuesday oil inventories had continued to rise despite the start of a global deal to cut supply and raised its forecast of production in 2017 from outside the group, suggesting complications in the effort to clear a supply glut.

(Reuters) - said on Tuesday inventories had continued to rise despite the start of a global deal to cut supply and raised its forecast of production in 2017 from outside the group, suggesting complications in the effort to clear a supply glut.

The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-producers agreed to cut half as much.

But in its monthly report said stocks in industrialised nations rose in January to stand 278 million barrels above the five-year average, of which the surplus in crude was 209 million barrels and the rest products.

"Despite the supply adjustment, stocks have continued to rise, not just in the U.S., but also in Europe," said in the report.

"Nevertheless, prices have undoubtedly been provided a floor by the production accords."

In the report, pointed to a increase in compliance by its members with their deal to cut output from Jan. 1.

Supply from the 11 members with production targets under the deal fell to 29.681 million bpd last month, according to figures from secondary sources that uses to monitor its output.

That means has complied by more than 100 percent with its plan to lower output for those nations to 29.804 million bpd, according to a calculation. didn't give a compliance figure in the report.

But the report revised up its estimate of supply from producers outside this year, as higher prices following the and non-cut help spur a revival in U.S. shale drilling.

Production outside is now expected to rise by 400,000 barrels per day (bpd), 160,000 more than previously thought. U.S. output in 2017 was revised up by 100,000 bpd.

While the secondary sources said Saudi output fell in February, Saudi Arabia reported to that it increased.

(Reporting by Alex Lawler, editing by Louise Heavens and David Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

OPEC says oil stocks keep rising despite supply cut deal

(Reuters) - said on Tuesday inventories had continued to rise despite the start of a global deal to cut supply and raised its forecast of production in 2017 from outside the group, suggesting complications in the effort to clear a supply glut.

The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-producers agreed to cut half as much.

But in its monthly report said stocks in industrialised nations rose in January to stand 278 million barrels above the five-year average, of which the surplus in crude was 209 million barrels and the rest products.

"Despite the supply adjustment, stocks have continued to rise, not just in the U.S., but also in Europe," said in the report.

"Nevertheless, prices have undoubtedly been provided a floor by the production accords."

In the report, pointed to a increase in compliance by its members with their deal to cut output from Jan. 1.

Supply from the 11 members with production targets under the deal fell to 29.681 million bpd last month, according to figures from secondary sources that uses to monitor its output.

That means has complied by more than 100 percent with its plan to lower output for those nations to 29.804 million bpd, according to a calculation. didn't give a compliance figure in the report.

But the report revised up its estimate of supply from producers outside this year, as higher prices following the and non-cut help spur a revival in U.S. shale drilling.

Production outside is now expected to rise by 400,000 barrels per day (bpd), 160,000 more than previously thought. U.S. output in 2017 was revised up by 100,000 bpd.

While the secondary sources said Saudi output fell in February, Saudi Arabia reported to that it increased.

(Reporting by Alex Lawler, editing by Louise Heavens and David Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22