Just six months ago, energy analysts predicted output from the Opec would climb too high and Saudi Arabia needed to cut to make room for other suppliers. They changed their minds after production from
"Now it's not whether the Saudis will make room, but whether they'll keep it going and maintain enough spare capacity," said
"Opec is increasingly having a hard time just doing its job of bringing all the barrels needed."
Even as the North American shale revolution propels
While US crude inventories rose to a record in April, restrictions on exports are keeping those supplies in the country, tempering forecasts that global oil prices will decline this year.
The grade has averaged
Opec, which produces about 40 per cent of the world's oil, will meet in
Opec's Economic Commission Board, a panel that reviews supply and demand levels before the meeting, concluded on
Boosting output that high would be "a Herculean task for the group to surmount given that production has been below 30 million barrels a day for the last five months,"
The situation has reversed since Opec last met in December. At that time, the IEA indicated the group would need to reduce output by about 3 per cent in the first half of 2014 to make way for
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