More draws predicted for late 2017, 2018 The oil market rebalancing is in progress, even if it is slower than expected, according to releases by Societe Generale and RBC Capital Markets. When OPEC first agreed to cut production in November, analysts were hoping that six months of reduced production would be enough to rebalance the oil market and draw down inventories. However, according to Societe Generale OECD crude and product stocks at the end of April were 56 MM barrels higher than at the end of December. OPEC was essentially forced to continue cuts, which were agreed to in late May. Societe Generale reports that if cut compliance is maintained, oil stocks will begin to decrease in the rest of the year. Global oil demand is projected to grow by 1.3 MMBOPD this year and in 2018. This increased demand, combined with decreased output from OPEC, means that the […]