Rising Crude Stocks Challange Opec Cuts

摘要

Opec is going to have to do a lot more work in order to trim crude oil inventories. With upward revisions to January and February stocks, and probably more builds coming for March, the global oil market has a large and growing cushion. Given falling oil demand and the steep contango in the futures curve, with the prompt oil price at a discount versus later delivery, inventories ought to stay high for some time. That will put more pressure on Opec, which meets again May 28 and wants to bring down crude stocks.