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OPEC Says Oil Glut Will Grow Next Year
Oil production outside the Organization of the Petroleum Exporting Countries has been higher than expected, suggesting the global glut of petroleum will continue well into 2017, the cartel says.
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Oil production outside the Organization of the Petroleum Exporting Countries has been higher than expected, suggesting the global glut of petroleum will continue well into 2017, the cartel says.
Oil prices have fallen about 50% over the past two years. OPEC, which supplies about 40% of the world’s exported crude, has been debating whether to cut production to align supply with demand.
The cartel predicts Norway, Russia and the U.S. will pump about 190,000 barrels per day more than expected this year. By next year, it says, global oil supplies will surpass demand by about 760,000 barrels per day. That volume is three times what OPEC predicted last month. The cartel generated 33 million barrels of crude per day in August.
The upturn in production outside the cartel makes it even less likely the group will agree at its next meeting in two weeks to trim its own output. Previous attempts to do so have failed because OPEC members are feeling the economic pressure of low prices and want to defend their market share.
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