OPEC Boosts Forecast for Rival Supply, Sees Balance in Late 2018

The Organization of Petroleum Exporting Countries‘ monthly report raised its outlook for non-OPEC supply in 2018 by 300,000 a barrels a day, as its projections for American output caught up with those of the U.S. government. As a result, an initiative by OPEC and Russia to clear a global oil glut by cutting output -- previously seen succeeding in the third quarter of 2018 -- will take effect more slowly.

Oil prices climbed to a two-year high above $65 a barrel in London this week, supported by a temporary pipeline halt in the U.K. and the Nov. 30 decision by OPEC and Russia to press on with supply curbs until the end of next year. While Kuwait and the United Arab Emirates said this week the group could consider winding down its efforts in mid-2018 if the market is back in balance, Wednesday‘s report suggests they‘ll need to persevere for longer.