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Crude rally: OPEC will have to do more to keep prices up
Mar 19: Brent crude prices rallied earlier in 2018, supported by a host of temporary factors., it seems
8These include supply disruptions in North Sea and Venezuela and colder-than-usual winter in North America.
8However, once the impact of these comes through fully, oil market fundamentals are expected to look similar to last year:
8OPEC supply discipline being off set somewhat by stronger US production.
8US supply remains the most significant factor supporting the supply-demand imbalance. Strong growth in US production to a new record suggests US producers are reacting swiftly  to higher prices. Although US inventories have reduced sharply to last 5-year average levels, there is believe these will begin to recover soon given these production levels.
8For a quicker re-balancing of markets however, OPEC would have to agree to a further extension of output cuts. Given the history of disagreements and non-compliance by OPEC
members, such an extension cannot be taken for granted.
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