U.S. Oil Export Surge Means OPEC's Output Cuts May Be Doomed
- ING sees U.S. eating into producer group’s Asian market share
- Dutch bank forecasts Brent oil at $57/bbl in second half 2018
OPEC's Control of the Oil Market Is Running on Fumes
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Oil risks sliding back under $60 a barrel as a surge in U.S. shipments to Asia threatens to undermine a deal between OPEC and its allies, according to ING Groep NV.
While the producer group complied with a pledge to curb output and ease a glut in 2017, U.S. flows that are gaining a bigger slice of the prized Asian market may prompt some nations to boost supplies, said Warren Patterson, a commodities strategist at the Dutch bank. The resulting fallout could drag down crude prices after a rally of more than 40 percent since June, he said.