Will The Oil Market Stalemate Be Broken Next Month?

With momentous events unfolding on the World stage, the oil market continues to evolve at a glacial pace. Global total liquids production was 96.29 Mbpd in August, down 630,000 bpd from the June peak. But with oversupply running at over 3 Mbpd during the second quarter, there is still a long way to go to rebalance the system. Production in OPEC, Europe, Russia and East Asia is stable with no sign of turning down. In fact, Norway and the UK appear to be skipping annual maintenance this summer and European production is up 420,000 bpd compared with a year ago. The only region showing a marginal production decline is North America where production has fallen 580,000 bpd from the April peak.

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