High exports and production from other countries, including Russia and the United States, are also contributing to the ongoing glut.
Top producer Russia, not an OPEC-member but participating in the deal, is expected to export 61.2 million tonnes of oil in the third quarter (around 5 million bpd), against 60.5 million tonnes in the second quarter, via pipelines, according to industry sources and Reuters calculations.
Add in Russia’s tanker shipments and its total exports are likely above 9 million bpd.
In the United States, which is not participating in any deal to hold back production, oil output has risen over 10 percent over the past year to 9.3 million bpd, and the Energy Information Administration (EIA) expects that figure to rise above 10 million bpd in 2018.
In a sign of the ongoing supply overhang, traders are increasingly hiring tankers again to store unsold crude, waiting to sell later at a higher price.