DUBAI (Reuters) - Top oil exporter Saudi Arabia pumped around 10.290 million barrels per day of crude in July, two OPEC sources said on Friday, down about 200,000 bpd from a month earlier.
The amount of oil supplied to the market in July was slightly higher at 10.380 million bpd, the sources said. < The difference between production and exports came from storage.
It is a "myth" that Saudi Arabia can quickly ramp up production to 12 million barrels per day.
1. It would require a lot of new well and additional infrastructure
2. It is doubtful it could EVER happen
3. Their largest oilfields are in secondary recovery (waterfloods). Pulling on the producing wells too hard risks permanent damage to the oilfields.
In the Raymond James' presentation to us on July 16, RJ estimates that Saudi Arabia's production will average 10.3 million barrels per day over the next two years.
Global Oil Market - August 6
Global Oil Market - August 6
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Global Oil Market - August 6
After Saudi’s decision to halt oil shipments through the Red Sea on July 25, Yemen’s Houthi group (supported by Iran) said on July 31 it would halt attacks in the Red Sea for two weeks to support peace efforts. Read: https://www.reuters.com/article/us-yeme ... SKBN1KP0B7
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Global Oil Market - August 6
Raymond James August 6, 2018:
Summary of this date's "Energy Stat"
"Last Monday, we rolled out our initial 2020 oil price forecast and, concurrently, increased our long-term price deck by $5/Bbl, to $70 WTI and $75 Brent. This above-consensus long-term oil price outlook is largely premised on bullish supply-side factors, but the number-one pushback we have heard is: ''will global oil demand be crushed by these higher prices?'' Today we will focus on the demand side of the equation looking at the following:
1) How will the rising oil prices impact global demand?;
2) Where will future oil demand come from regionally?;
3) How will IMO 2020 impact oil product demand?;
4) How much and how soon will electric vehicles (EV's) impact oil demand; and, finally,
5) How will a rising U.S. dollar impact oil demand?.
Our central conclusion is this: Due to limited ability of the world to grow oil supplies at oil prices below $65/bbl, we believe oil prices will need to rise sufficiently to curtail oil demand growth over the next five to ten years.
Summary of this date's "Energy Stat"
"Last Monday, we rolled out our initial 2020 oil price forecast and, concurrently, increased our long-term price deck by $5/Bbl, to $70 WTI and $75 Brent. This above-consensus long-term oil price outlook is largely premised on bullish supply-side factors, but the number-one pushback we have heard is: ''will global oil demand be crushed by these higher prices?'' Today we will focus on the demand side of the equation looking at the following:
1) How will the rising oil prices impact global demand?;
2) Where will future oil demand come from regionally?;
3) How will IMO 2020 impact oil product demand?;
4) How much and how soon will electric vehicles (EV's) impact oil demand; and, finally,
5) How will a rising U.S. dollar impact oil demand?.
Our central conclusion is this: Due to limited ability of the world to grow oil supplies at oil prices below $65/bbl, we believe oil prices will need to rise sufficiently to curtail oil demand growth over the next five to ten years.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Global Oil Market - August 6
On August 5, 2018, Reuters reported Venezuelan authorities said on Sunday they have detained six people over drone explosions at a rally led by President Nicolas Maduro. The suspects launched two drones laden with explosives over an outdoor rally Maduro was holding in downtown Caracas to commemorate the National Guard, Interior Minister Nestor Reverol said. One was "diverted" by security forces while the second fell on its own and hit an apartment building, Reverol said. The attack highlights Maduro's challenges in maintaining control over the OPEC nation, where widespread food and medicine shortages have fueled outrage and despair everywhere from hillside slums to military barracks.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group