Opec’s output cut appears to have had little effect on Opec, at least for now
Launceston — If you were looking for evidence of reduced crude oil supply from oil cartel Opec and its main ally in cutting output to boost prices, Russia, then stay away from Asia’s top importers.January import data from China, India and Japan do little to show the effect of reduced crude supply, but do suggest that prices have risen in response to move by the producer group and its allies to remove about 1.8-million barrels a day from global oil markets.Top importer China’s January data provide a case in point. Imports rose 27.5% from the year-earlier month to 34.03-million tonnes, equivalent to 8.01-million barrels a day.That is an impressive increase, believed mainly to be due to additions to strategic reserves and rising demand from smaller, private refiners that are now allowed to import crude.Saudi Arabia — the main driver behind Opec’s decision in November to cut output — increased exports to China by 18.9% to the equivalent of 1.18-million barrels a day in January from the ...
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