According to the secretary general of OPEC, Mohammad Barkindo, the group is near its goal of rebalancing the oil market as an inventory overhang targeted by its output curbs continues to shrink, Bloomberg reports.
The Stockpile Glut — including crude as well as oil products — has shrunk to 130 million barrels above the five-year average, Barkindo said in a Bloomberg Television interview in Beijing before the release of OPEC’s monthly market report on Wednesday. The group last month estimated the overhang at about 154 million barrels. “We are beginning to see a return to stable markets,” Barkindo said. “Something that has eluded us for several years.”
Barkindo has previously said the inventory glut has shrunk from a record of more than 380 million barrels as OPEC implemented its output cuts. The overhang in oil-product stockpiles is less than 30 million barrels, he said on Wednesday, adding that nations that are part of the production deal have conformed to the agreement by more than 100 percent on average over January to October this year.
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