Imbalances still exist in the oil market, according to Iran’s OPEC governor, but there isn’t enough oversupply to derail crude prices.
“There is some oversupply in the market,” Mohammad Ali Khatibi told Reuters in a telephone interview. “But it cannot damage the market. It can be absorbed into stocks.”
Storage levels have fallen over winter, but remains slightly above-average. Currently, forward cover in developed countries is at 58.1 days. The oil glut coming from floating storage is also decreasing – in January floating storage declined by 20%.
Source: Reuters
Source: Taiwan News
