Oil crash: Global oil industry lost $300bn in 2 years -OPEC scribe

Oil tankers wait to enter the port of Duba in Saudi Arabia

A recent report showed Opec's compliance with its own supply cuts fell to a six-month low in June, causing global oil stocks to remain persistently high, according to analysts at Sanford C Bernstein.

Compliance with the OPEC production cap (calling for a cut of 1.8 million barrels a day until March next year) deal dropped to 78% in June, the Agency said.

"And success is judged over the whole period rather than in one month", the IEA said.

Chinese customs reported Thursday that the country imported 8.55 million barrels of oil per day in the first half of 2017, an increase of 13.8%.

The price for September futures of Brent crude oil has increased by 0.04 percent to $48.44 per barrel as of 06:06 (UTC +4).

"For fellow OPEC members, who agreed to reduce production by 1.2 million bpd, to see their cut effectively diluted by almost two-thirds must be very frustrating, especially as their pact has, hitherto, been well observed by historical standards", the IEA said.

Further growth of 1.4 million barrels per day is foreseen for 2018, with global demand reaching 99.4 million barrels per day.

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That came despite a pledge by OPEC to curb production by about 1.2 million bpd between January this year and March 2018, while Russian Federation and other non-OPEC producers say they will hold back half as much.

The agency forecast non-OPEC supply would grow by a combined 2.1 million b/d over 2017 and 2018, led by the US.

The IEA said stocks in industrialised nations in May were 266 million barrels above the five-year average, down from 300 million barrels in April. The agency added that would still "mark the highest annual average production in US history".

Bharat Petroleum Corp Ltd could buy U.S. light crude in a tender on Friday as they are priced competitively against African oil, the company's head of refineries Ramachandran said.

That's about 100,000 barrels more than it's now producing.

Opec's rebalancing effort has been stymied in part by rising output from members Libya and Nigeria, which were exempt from cuts and are now producing about 700,000 barrels a day more than at the time of the initial November Opec cut agreement, according to U.S. investment bank Jefferies.

Rising demand is helping to drain a global fuel glut but rebalancing of the market is taking longer than anticipated. The current market downturn is lasting longer than previous slumps, due largely to 700,000 to 800,000 barrels a day of additional supply from the USA, he said.

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