LONDON (Bloomberg) - While OPEC has helped global oil markets recover from the coronavirus crisis, the cartel will soon face a new challenge: the mountain of unwanted crude that piled up during the pandemic.
When the Organization of Petroleum Exporting Countries and its partners meet in just over a week, the unprecedented accumulation of oil inventories should have finished. Vast production cuts by the cartel, along with a recovery in demand, will have brought the market back into balance.
Yet by that time more than a billion barrels of crude will have poured into the world’s storage tanks, according to a range of analysts and consultants. Burning through the remaining surplus -- a key driver for the next move in crude prices -- will be OPEC’s next big obstacle.
https://www.worldoil.com//news/2020/6/1/oil-piled-up-in-storage-worldwide-will-be-opec-s-next-challenge
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