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Page added on September 9, 2018

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Are The Saudis Keeping Oil Prices Suppressed?

Are The Saudis Keeping Oil Prices Suppressed? thumbnail

We’ve seen very little recently to dissuade us from the thesis of much higher oil prices to come. EIA charts here on oilprice.com consistently show just how far short of projections the US is going to be to expected production this year.

And if we scan the news, the continuing bullish headlines are just about everywhere.

Permian production is getting handcuffed further by takeaway capacity, here’s another chart showing the increasing amount of associated gas in the Permian that is being flared as pipeline space becomes more and more dear.

(Click to enlarge)

Around the globe, oil producers everywhere are showing signs of slowing production growth. Mexico’s incoming President is considering stopping auctions for leases from foreign oil companies, and toying with joining OPEC. Venezuela continues its free-fall as the vultures circle the carcass of state-run CITGO, trying to extract what little is left. After the long break of corruption trials and settlements with US oil companies, Brazil has again opened up auctions for leases in the Pre-Salt offshore region. Despite the opportunities there, Campos basin production has continued its steady drift downwards.

Renewed Iranian sanctions are beginning to kick in, with the likely expectation of dropping their exports by up to 1m barrels a day.

OPEC and Russia are looking to formalize their cooperation on production, considering just how well that’s worked out in the past two years to…

oilprice.com



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