The international energy agency said that in March the oecd's oil inventories had fallen to 2.819 billion barrels, or just one million barrels from the 2.81.8 billion barrels of OPEC production cuts.In fact, in May, the country's oil inventories fell below 2.818 billion barrels, taking into account that the data had been released for another two months.As a result, the international energy agency (iea) is confident that the global supply glut in May is no longer the case, and that the market has been rebalanced for a long time.
For a long time, the oecd inventory has been a major contributor to the global glut of crude oil.OPEC's production cut since January 2017, combined with cuts in OPEC production and other factors, has reduced the total number of oecd stocks by about 290 million barrels, a significant deceleration.
The big question facing supply and demand in the future is that OPEC and other producers will continue to cut production.If the reduction strategy is still implemented, tight balance or tight supply is likely.
Will this happen?The OPEC meeting, to be held in early June, is important.At the meeting, a major issue was the discussion of production cuts.
OPEC's attitude was evident in April's meeting of OPEC ministers.At the meeting, the Saudi oil minister suggested that the measure of production cuts should not be just one, but that the us shale oil production would need to be taken into account.For the oecd's inventories, OPEC's cut in output and the "hedging" of shale oil production actually did not have a zero-growth effect on inventory change.Once the OPEC meeting in June decides to continue cutting production, the decline in the oecd's inventory will be inevitable.