• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 15 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 9 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 14 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 9 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 18 hours Middle East on brink: Oil tankers attacked off Oman
  • 12 hours Never Knew Gasoline Prices were this important!
  • 9 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 7 mins Plants are Dying
  • 6 hours We Are Better Than This
  • 1 day Emmissions up, renewables nowhere
  • 1 day Middle East Attack Jolts Oil-Import Dependent Asia
  • 11 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 11 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
Alt Text

How Oil Defeated The Nazis

The role of crude oil…

Alt Text

This Overlooked Canadian Oil Niche Is Making Traders Billions

As major pipeline bottlenecks continue…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

BP Chief: Saudi Arabia Is Holding Back Production

“I think Saudi Arabia does have capacity that can bring to the market,” BP’s chief executive Bob Dudley told CNBC on Wednesday on the sidelines of the Oil & Money Conference in London.

“But on the other side of it you have very unpredictable circumstances in Venezuela and of course, with the Iran sanctions,” Dudley noted, commenting on the current market forces driving the oil prices.

As the start date of the U.S. sanctions on Iran’s oil is less than four weeks away, the market is jittery and prone to emotional reactions regarding the two key uncertainties over the next couple of months—how much Iranian oil will be lost to the U.S. sanctions, and how much spare capacity Saudi Arabia can bring (or is willing to bring) to offset possible steep losses.

Analysts are estimating that the sanctions on Iran will remove at least 1 million bpd from the market, with some predicting losses could be as large as 2 million bpd.

The only really large spare capacity is in Saudi Arabia, but the issue with this is that it has never been tested, because Saudi Arabia has never pumped more than 10.72 million bpd, its all-time high record from November 2016. Last week, the Saudis hastened to inform the market that they are currently pumping 10.7 million bpd—just shy of the all-time record high—and could even tweak that 10.7 million “slightly higher” next month. Related: Saudis To Boost Oil Supply To India As Iran Sanctions Kick In

In view of those uncertainties, BP’s Dudley told CNBC that he expects in terms of oil prices that “it’s going to be 45 days of extreme volatility, it could spike up, it could also go the other way.”

“If waivers were granted to others, to big oil consuming countries, you could see it (the price) go down, there’s a lot of uncertainty right now,” Dudley said.

Asked about whether oil prices at $85 have already resulted in demand destruction, Dudley told CNBC, “we don’t see that destruction.”

Volatility in prices won’t be permanent and we’ll get back to the fundamentals, BP’s chief executive said, noting that the UK supermajor is keeping disciplined spending by budgeting at oil prices at $60 to $65 a barrel.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Brandon on October 15 2018 said:
    As a result of the Aramco and Khashoggi cases it's evident to worldwide oil consumers the reliability of Saudi Arabia as business partner is at historically low levels. Considered Iran and Venezuela struggling economies, and the negative marginal productivity of US shale (not to mention US internal divisions on environmental impacts of fracking), strong advice for commodity procurement teams at this stage is to divert their investments towards offshore drilling contractors, still a little more expensive but definitely more reliable partners.

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News