OPEC may need help to end the global glut of oil - BBG

Bloomberg carrying a story this Thursday, highlighting that even if OPEC implements output cuts in full, it still won’t help oil markets to emerge out of the omnipresent global supply glut.

Key Quotes:

“The Organization of Petroleum Exporting Countries aims to shrink the world’s bloated oil inventories with its first production cut in eight years, according to Secretary-General Mohammed Barkindo.“

“Yet the bloc’s own data show that even the maximum reduction under consideration would barely dent record stockpiles next year. That makes securing help from competitors -- chiefly Russia -- critical to ending the glut.”

“Global supplies have exceeded demand for three years straight, resulting in the accumulation of an oil-inventory surplus big enough to fill about 160 supertankers.”

“While cutting output to the lower end of the range adopted last month would stop a further expansion, it would curb the existing excess by just 11 percent next year, the group’s data show.”