OPEC’s Long-Sought Success Spoiled by 2018 Oil Supply Worry
- Market uncertain on how curbed OPEC oil will be returned: BMI
- Brent crude seen vulnerable to declines on persisting concerns
Oil output from U.S. shale producers is poised to reach a fresh record next month, further complicating OPEC's efforts to support prices. Bloomberg's Tracy Alloway reports on 'Bloomberg Daybreak: Europe.' (Source: Bloomberg)
Oil investors are already worrying over the potential fallout when OPEC’s deal to cut output expires, marring emerging signs that the accord to shrink a glut is finally succeeding.
Uncertainty about how supplies curbed by the Organization of Petroleum Exporting Countries and its allies will be returned to the market in 2018 is clouding the outlook for crude, according to BMI Research. Prices remain vulnerable even though demand is strong, production gains are largely exhausted in Libya and Nigeria, and U.S. shale output is slowing, the unit of Fitch Group said in a report.