New (Recent) High for Saudi Oil Production

Posted by Big Gav in saudi arabia

Staurt at Early Warning has an update on Saudi oil production - New High for Saudi Oil Production .

According to OPEC, Saudi Arabian production increased to 9.75mbd in July. This is a modern record (though they produced more back in the 1980-1981 timeframe). However, they didn't achieve the 10mbd that press reports were suggesting back in June. Whether because the press had the target wrong, or because they couldn't quite manage the goal, we are left to speculate.

It will be very interesting to see if they can maintain or further increase this level. However, if they can't, the current stock market chaos and drop in oil prices will provide them the perfect cover to reduce production on claims of lower demand.

The increase from May to July is about 800 or 900kbd - still some way short of making up for the loss of Libyan production.

1 comments

Pangolin says 2:01 PM

I would bet money they're pulling it from a tank farm. The Saudi's know better than anyone else in the world that the harder you draw on an oil well the less oil you ultimately get.

That number will drop and quickly.