Opec's supply curbs not enough to drain oil stockpiles: analysts

Dubai

OPEC (Organization of the Petroleum Exporting Countries) is likely to bring the oil market into balance by the middle of next year, but its production cut looks set to fall short of its stated goal of draining the stockpiles that are depressing prices.

The oil market will rebalance "towards the middle of next year", according to Nigeria's Minister of State for Petroleum Emmanuel Kachikwu, bringing an end to more than three years when supply exceeded demand. However, Bloomberg News calculations based on Opec data show that across the whole of 2017 there will be little overall reduction in record oil inventories - even if the group convinces non-members to join supply curbs at a meeting on Saturday.