Malaysia’s clogged oil shipping lanes underscore failure to reduce glut


That’s where they found the oil tanker in Waterworld.

Dateline 2017-05-05, Reuters:

Oil industry leaders meeting in Malaysia next week to discuss extending production cuts won’t have to look far for evidence the market remains awash in supply.

Just off the coast, in the Straits of Malacca, dozens of tankers loaded with record amounts of unsold fuel show an OPEC-led agreement to cut production in the first half of 2017 has yet to tighten the market.

While not on the official agenda at the bi-annual Asia Oil and Gas Conference in Kuala Lumpur from Sunday to Tuesday, the attendance of top oil executives and policy makers including Saudi Arabian energy minister Khalid Al-Falih, ensures the production cut will be a major talking point.

 

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