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How Global Oil Flows Might Look After OPEC’s Supply Shock

  • World’s biggest exporter wants to keep up supplies to Asia
  • Plan to drain Atlantic Basin glut could alter global flows
Bloomberg business news

IEA Sees OPEC Deal Causing Oil-Supply Deficit in 2017

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OPEC’s quest to end a global crude glut already snapped a two-year slump in oil prices. Now attention is turning to how the group’s surprise decision to cut output will transform international trade flows of the world’s most important commodity.

The early signs are that Middle East suppliers will prioritize Asia, pushing competitors in Africa and the Americas to keep cargoes in the Atlantic region. Saudi Arabia has indicated it will initially maintain most flows to fast-growing Asia, while draining more heavily oversupplied Western regions. Kuwait is doing much the same.