With Glut Almost Gone, OPEC Still Cuts More Than Oil Pact Demands

With Glut Almost Gone, OPEC Still Cuts More Than Oil Pact Demands
A global oil glut has been virtually eliminated, figures published by OPEC show.

But OPEC forecast headwinds to future growth, such as the slow place of oil industry investment and an expected dip next year in investment in U.S. shale, also known as tight oil.

"Fast-growing U.S. tight oil production is increasingly faced with costly logistical constraints in terms of outtake capacity from land-locked production sites," OPEC said.

Adding to the impact of OPEC-led cuts, the U.S. decision to withdraw from an international nuclear deal with OPEC member Iran and to renew sanctions has raised concerns about Iranian oil exports, helping drive prices higher.

OPEC signalled the group and its allies were ready to step in should "geopolitical developments" impact supply. Saudi Arabia said last week it was ready to offset any shortage but would not act alone.

"OPEC, as always, stands ready to support oil market stability, together with non-OPEC oil producing nations participating in the Declaration of Cooperation," OPEC said, using its name for the pact on supply curbs.

(Editing by Jason Neely and Edmund Blair)


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