OPEC research head says oil pact has cut surplus to 74 mn barrels
London: An excess of oil held in storage has fallen significantly in the past year to stand 74 million barrels above the five-year average due in part to an OPEC-led deal to cut output, OPEC’s head of research said on Tuesday.
Oil stocks in developed OECD economies, which were 340 million barrels above the five-year average in January 2017, have fallen to 74 million barrels last month, Ayed Al Qahtani, OPEC’s head of research, said at an industry conference.
The Organization of the Petroleum Exporting Countries is reducing output by about 1.2 million barrels per day as part of a deal with Russia and other non-OPEC producers. The pact started a year ago and will run until the end of 2018.
OPEC’s stated goal is to reduce oil inventories to the five-year average, although Saudi Arabia has indicated the target could be revised.