Opec’s first 2018 outlook shows it’s still pumping too much oil

Brent crude fell 60 cents to settle at $51.81 a barrel, while U.S. West Texas Intermediate crude slipped 61 cents to settle at $50.18 a barrel.

LONDON: Opec’s first assessment of world markets in 2018 showed that, despite cutting output, the group is still pumping too much crude.

Even though the Organisation of the Petroleum Exporting Countries delivered on pledges to reduce supply, its output exceeded demand in the first half of this year, according to a report from the group. Its production was 32.6 million barrels a day in June. With US oil producers leading a pick-up in rival supply, that’s also higher than the 32.2 million a day Opec expects will be needed in 2018.