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Representatives from OPEC and Russia soon will meet to discuss how best to determine crude oil inventories. hoping to come up with a system more reliable than what’s currently used.
OPEC members and non-OPEC producers led by Russia. which for the last 14 months have trimmed roughly 1.8 million barrels per day (MMBPD) of crude from production. are slated to talk about inventory when they meet in April. Saudi Arabia Energy Minister Khalid Al-Falih told reporters in Riyadh this week.
Since the OPEC non-OPEC production reduction was agreed to in November 2016. the producers haven’t publicly disclosed how this benchmark is defined. Al-Falih admitted last month a technical discussion is needed on what the oil market needs in terms of inventory.
He said finding reliable data for inventories remains a challenge.
Even as more analysts say the group can probably end the cutbacks earlier than currently planned (the end of 2018). the two dozen producers that have cut production say the surplus in industrialized countries remains large.
While oil stockpiles in developed nations have shrunk to the lowest point in four years. supplies still remain about 52 million barrels above the five-year average. according to the International Energy Agency.
Data on oil demand and inventories outside developed countries often is sketchy. which is one reason OPEC and Russia base their production-cut target on more reliable data from OECD. the Organization for Economic Cooperation and Development.
