OPEC Says Rivals Are Oversupplying, Hindering Efforts To Freeze Output
OPEC said earlier this week rival crude oil producers are supplying more than expected. This is bad news for the petroleum glut, which will likely get worse within the next year as a result.
OPEC’s 14-nation cartel will meet Sept. 26 through Sept. 28 in Algeria to discuss options for freezing output to bring the crude market within balance, as crude prices have fallen more than 50% to new lows of $40 to $50 a barrel within the past two years due to supply outpacing demand.
According to its research, non-OPEC members such as the US, Norway and Russia will produce 190,000 more barrels a day than anticipated this year alone. And by 2017, the cartel’s research says oil supply could outpace demand by an average 760,000 barrels a day, the Wall Street Journal reports. These dynamics could put a damper on the cartel’s move to limit output, especially if it plans to compete with rising production. [WSJ]