Press Release (ePRNews.com) - SHANGHAI - Dec 11, 2017 - Ashton Whiteley analysts say Asian refiners are wasting no time reacting to the news of a recent decision by OPEC and Russia to prolong their agreed output restrictions throughout 2018. In a move that will mean OPEC and Russia lose significant market share, refiners in Asia are purchasing more oil from the Gulf of Mexico and Caribbean.
Production restrictions aimed at tightening the market in an attempt to boost prices have been in effect since January and were due to end in March of next year. However, the Organization of the Petroleum Exporting Countries (OPEC), as well as non-OPEC countries including Russia, agreed to extend the production cuts throughout 2018.
In spite of the output restrictions, oil supplies remain abundant. Before the official announcement in which OPEC stated that the restrictions would be extended, Asian refiners had already looked into shipments of oil from other regions.
An analyst at Ashton Whiteley said that enquiries from Asia will likely turn into orders following the news of the extended production cuts.
OPEC’s and Russia’s foremost problem with restricting production has been that it enabled the U.S. to ramp up production and gain greater market share.
According to a recent report by Ashton Whiteley, shipping data shows oil shipments from the Caribbean and Gulf of Mexico to Asian countries have already increased significantly and that the largest increase in exports to Asia comes from the United States where output is on the rise due to the use of shale oil production techniques.
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