OPEC Output Cut Could Cause Shortages-EIA

WASHINGTON (Reuters) – An early OPEC oil production cut could lead to a shortage of gasoline during the peak driving season and low heating oil inventories going into next winter, the U.S. Energy Information Administration said on Wednesday.

OPEC should not reduce its oil production quotas before its March 16 meeting, because while demand for oil products normally drops in the second quarter, demand from refiners for crude does not, the U.S. Energy Department arm said.

“Thus, any cut in crude oil production from OPEC will likely cause crude oil inventories to be drawn upon much more than normal, making it difficult for refiners to maintain normal output level,” EIA said in its weekly review of the oil market.

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