Opec has shown it is serious about cutting output in a bid to balance markets with lynchpin Saudi Arabia reporting 23-month low output of 9.75mn b/d in January. But, with US stocks at record levels, there is much work to do.

An extension of last November’s output cut deal beyond its initial mid-2017 expiry will be needed to bring markets into balance.

Oil prices have remained steady so far this year, with Brent in the mid-$50s/B as markets wait to see whether Opec and non-Opec...