OPEC and its allies have almost achieved their goal of clearing an oil glut, but their efforts could be derailed by rising supplies from the U.S. and other rivals, the International Energy Agency said.
Oil stockpiles in developed nations fell the most in more than six years in December as supply cuts by OPEC and Russia took effect. The surplus is also being cleared by higher consumption, with the agency boosting its forecast for global demand growth in 2018 by about 100,000 barrels a day to 1.4 million a day.
Yet OPEC’s strategy could be backfiring, as the increase in prices to a three-year high stimulates more supply from America. U.S. output will soon surpass that of the cartel’s biggest producer, Saudi Arabia, and may overtake Russia as global leader by the end of the year, according to the IEA. Read More…
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