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Page added on June 12, 2018
Saudi Oil Output Said to Rise Above 10 Million Barrels a Day
Saudi Arabia boosted daily oil output in May to the highest level since October, ahead of meetings with Russia and other global producers next week where they may propose raising production even further and phasing out 18 months of voluntary cuts.
Saudi Arabia, which along with Russia is trying to garner support for lifting output limits, told the Organization of Petroleum Exporting Countries that its daily production rose 162,000 barrels a day to 10.030 million in May compared with the previous month, a person with knowledge of the data said, asking not to be identified because the information isn’t public.
Saudi Arabia and Russia may propose a gradual production increase at the June 22-23 meetings in Vienna, intending to offset any supply disruptions in Iran and Venezuela. Riyadh pledged to pump no more than 10.058 million barrels a day under OPEC’s output-cuts agreement with Russia and other allies outside the group. The desert kingdom usually boosts output in summer months as domestic demand for fuel rises.
Russia too is showing signs of a weaker commitment to supply cuts as its production increases before talks with OPEC about the future of the accord for limiting output. The nation boosted crude supply to the highest in 14 months in the first week of June as some companies breached their caps, a person with knowledge of the matter said.
The U.S. is said to have asked Saudi Arabia and others to relax output restraints put in place in early 2017 as prices near $80 a barrel pose a threat to economic growth.
Iraq on Monday joined Iran and Venezuela in opposing any plans to start boosting crude output. OPEC should resist pressure to increase oil supplies as the production cuts haven’t yet achieved their purpose, with oil prices still below the desired level, Oil Minister Jabbar al-Luaibi said in a statement.
7 Comments on "Saudi Oil Output Said to Rise Above 10 Million Barrels a Day"
JuanP on Tue, 12th Jun 2018 8:06 am
I expect both Saudi Arabia and Russia to support an extraction increase at the coming meeting. Saudi Arabia wants to weaken Iran and is willing to pay a price for it. Russia is covering its costs and its government is running a significant budget surplus. They both understand that higher prices will have a negative impact on the global economy. Russia, in particular, is perfectly happy with today’s prices.
BobInget on Tue, 12th Jun 2018 11:35 am
HOUSTON, June 11, 2018 /PRNewswire/ — C&J Energy Services, Inc. (“C&J” or the “Company”) (NYSE: CJ) today announced that the Company has modified its horizontal frac fleet deployment plans. C&J deployed two horizontal fleets earlier this year and presently continues with two more scheduled for redeployment in the next two months. The remaining three fleets, consisting of approximately 120,000 hydraulic horsepower, that were previously scheduled for deployment starting in October 2018 are being deferred to a later date.
“In line with our disciplined capital deployment philosophy, we have made the strategic decision to delay redeploying our last three fleets due to concerns with take away capacity in the Permian and additional frac horsepower brought to market by some of our peers at lower pricing. At this time, we simply do not have the firm demand and favorable economics for those fleets that we require, so we will postpone deployment until we can obtain the utilization, pricing and time commitment needed to justify those capital expenditures,” said Don Gawick, President and Chief Executive Officer of C&J. “We believe that staying true to our strategy will drive enhanced shareholder returns over time. However, we are confident that the fleets currently committed for deployment this year will generate returns within our target of a two-year payback. We look forward to further updating the market on our revised capital expenditure plans when we report second quarter earnings in early August. We remain committed to assessing all potential opportunities to maximize shareholder value over the near and long-term, and we will reassess our fleet deployment strategy once market conditions become clear.”
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Pipelines, increase in demand for fracking not there. This has to revise the predictions for large increases in production for the 4th Q. Interesting.
Furthermore: If the Canadian (trade) situation grows worse, finding heavy oil to feed US refineries will become serious giving that high proportion of condensates being produced.
Remember, Venezuelan production has cliff fallen.
WW demand, never greater.
US exporting oil we will buy back at $10 bucks a barrel more than Brent. Here’s why:
The current price differential stands @ $9.93
on Friday the Arb went OVER $11.
Of course, our exports will put US in a death plunge if Canada rudely tariffs oil beginning Canada Day. (July 1)
The US is currently picking a trade fight with Canada, and selling off SPR at the same time.
bigblacknuts on Tue, 12th Jun 2018 6:01 pm
Hope Matthew Simmons enjoys Anthony Bourdain as his new butt buddy in hell. Those damned fags in hell are creating all the new oil through their ass rape. No wonder the arabs have the most oil.
Boat on Tue, 12th Jun 2018 6:53 pm
Trump squeeses the Saudi and Russian balls and comes up with oil. Just wait till he fracks them.
Sissyfuss on Tue, 12th Jun 2018 9:44 pm
After the CIA droned MBS we suddenly have increased production. Or maybe not.
JuanP on Wed, 13th Jun 2018 8:03 am
Russia 2018 FIFA World Cup oil politics? MBS and Putin are likely to sit side by side when the Saudi and Russia teams play the opening game this week, and will likely cut a deal there. I expect the quotas to be revised at the coming OPEC+ meeting. Some countries will not be happy.
https://www.rt.com/business/429583-russia-saudia-arabia-oil/
Don Zenga on Wed, 13th Jun 2018 9:36 pm
Saudis are very smart.
They want to use all their Oil to refine and sell the value added products like Gasoline, Kerosene & Diesel.
Their plan is to double the refining capacity from current 4 million b/d to 8 million b/d by 2030 and towards this end, an investment of $44 billion in a refinery in India is being planned.
That means all their crude will be used towards transport fuels.