Skip to content
Subscriber Only

OPEC and Allied Producers Have Already Cleared Oil Surplus

  • OECD stocks fell to 20 million barrels below 5-year average
  • Market re-balanced on more compliance with cuts, summer demand
Video player cover image
Stephen Schork, president of the SchorkGroup, an energy consulting company, talks about oil production and prices.(Source: Bloomberg)
Updated on

OPEC and allied oil producers including Russia concluded that the crude market re-balanced in April, when their output cuts achieved a key goal of eliminating the global surplus.

The excess in oil inventories, which has weighed on prices for three years, plunged in April to less than the five-year average for stockpiles in developed nations, according to people with knowledge of the data assessed at the meeting of the Joint Technical Committee of OPEC and other producers last week in Jeddah, Saudi Arabia.