Related Articles
Report
Forward article link
Share PDF with colleagues

Glut or glory

The Opec-non-Opec deal has brought hopes of a price recovery. But its success is not guaranteed

How long will this Opec-non-Opec deal last? The will of the market is, for now, behind the deal. If the producers who signed up in December manage to cut almost 1.8m barrels a day of supply, as they pledged, the stock draws now already underway will speed up, supply and demand will balance and a tighter market will sustain a $55-a-barrel ledge. That's what Khalid al-Falih, Saudi Arabia's oil minister, thinks - and he believes it will happen by mid-year. If so, he says, Opec won't need to extend the deal when it meets at the end of May. "The rebalancing which started slowly in 2016 will have its full impact by the first half." Opec's own secretariat offers a different view. Thanks to slowe

Also in this section
US shale producers under oil-price pressure
28 June 2017
US tight oil companies staged a comeback at the first sign of a price recovery last year. Now, as surging US shale activity undercuts the oil price, markets want them to start putting on the brakes.
Energy demand stayed low in 2016, as the fuel mix shifted towards cleaner energy sources
20 June 2017
China and India accounted for almost all the growth, says BP, and global emissions were flat for the second year in a row
The global oil-demand growth forecast for 2017 depends on a bumper Q4
15 June 2017
Either Q1-Q4 crude consumption will rise at its fastest pace since 2010, or the data are very wrong