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Oil prices have declined by over 10% this month amid signs the market isn’t rebalancing or tightening as fast as expected by major producers four months ago. 

“There were some major assumptions built-on where demand and the recovery would be now, and it just hasn’t happened. If I’m OPEC and if I’m Saudi Arabia, I would be concerned,” Mohammad Darwazah, an analyst at research firm Medley Global Advisors LLC told Bloomberg. 

OPEC+, a loose group of major producers led by Saudi Arabia and Russia, began reducing output by 9.7 million barrels per day from May 1. The output cut deal was revised lower to 7.7 million barrels per day in August. 

Even so, the market remains oversupplied with demand recovery from the coronavirus pandemic faltering. According to Bloomberg, trading houses are hiring oil tankers on long-term contracts once again to store surplus barrels.