OPEC report shows global oil glut virtually eliminated
OPEC and other producing countries are still trimming output more than their supply-cutting pact requires
New York — Oil prices rose on Monday as OPEC reported that the global oil glut has been virtually eliminated, while US crude’s discount to global benchmark Brent widened to more than $7, its deepest in nearly five months. Global benchmark Brent was up $1.08 cents at $78.20 a barrel by 15.56 GMT and US crude rose 43 cents to $71.13. The report from the Organization of the Petroleum Exporting Countries "was bullish. That absolute plunge in Venezuelan production ... just highlights how tenuous the market is in terms of the supply and demand balance," said John Kilduff, Partner at Again Capital LLC. The OPEC report, published Monday, showed Venezuelan production at its lowest in decades and said the global oil glut had been virtually eliminated. Even so, OPEC and other producing countries were still trimming output more than their supply-cutting pact required. US crude’s discount to Brent was more than $7, the widest since late December. "You have the threat that a high enough price wil...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.