Halfway into 2017's oil supply cut, Asia remains awash with fuel
Halfway into an OPEC-led oil supply cut, Asia remains awash with
fuel in a sign that the group's efforts to rein in a global glut have so
far had little effect.
The Organization of the Petroleum Exporting Countries (OPEC) and
other suppliers including Russia have pledged to cut production by
almost 1.8 million barrels per day (bpd) during the first half of this
year to rein in oversupply and prop up prices.
Yet almost three months into the announced cuts, oil flows to Asia,
the world's biggest and fastest growing market, have risen to near
record highs.
The Asian surplus will pressure global oil prices and weigh on the
budgets of major oil producing nations but may also help spur growth in
demand needed to soak up the excess.
Thomson Reuters Oil Research and Forecasts data shows around 714
million barrels of oil are being shipped to Asia this month, up 3
percent since December when the cuts were announced.
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