• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 10 hours Adsorbent natural gas tanks are revolutionary.
  • 33 mins Total nonsense in climate debate
  • 4 mins Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 9 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 10 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 12 hours IMO2020 To scrub or not to scrub
  • 6 hours Theresa May to Step Down
  • 1 day Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 2 days Will Canada drop Liberals, vote in Conservatives?
  • 18 hours IMO 2020 could create fierce competition for scarce water resources
  • 2 hours Some Good News on Climate Change Maybe
  • 2 days Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 days Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
Alt Text

The Silence Before The Storm In Oil Markets

Current market volatility may seem…

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

Uncertainty Rises On Saudi Oil Minister's Comment

Global crude oil supply might need some cuts, Saudi Arabia’s Energy Minister Khalid al-Falih told state TV channel al-Ekhbariya as quoted by Reuters, to offset recent increases. “We (have) entered the stage of worrying about this increase,” the official said, adding any reduction in supply would go towards ensuring the stability accomplished as a result of the OPEC+ production-cutting pact sealed at the end of 2016.

The minister’s remarks are somewhat surprising as they come amid worry about loss of supply from Iran once U.S. sanctions enter into effect next month. However, there has also been new concern among market players: that global economic growth may be slowing down and will continue to slow down, ultimately hurting oil demand.

What makes the comments confusing, however, is the fact they come on the heels of earlier statements by Falih that Saudi Arabia is ready to increase production to up to 12 million bpd and also invest in boosting its spare capacity.

“I don’t rule out that the Kingdom’s production which has been 9-10 (million barrels per day) over the last decade or so will be a million to two millions (barrels) higher,” the energy minister told the Saudi Gazette just this Tuesday.

In the same report, Falih was quoted as saying global oil demand would grow from 100 million bpd to 120 million bpd over the next 30 years.

Earlier this month, Falih had said Saudi Arabia will continue boosting its production of crude oil in November as well, after two months of increases, with the October daily rate estimated at 10.7 million bpd. He also made sure the message is clear: "Given the disruptions that have taken place, oil would be easily in the three-digit range had it not been for the extra efforts the kingdom had done," he said as quoted by S&P Global Platts at an industry event in India, "Saudi Arabia has proactively, deliberately and responsibly invested in its spare capacity."

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Mamdouh G Salameh on October 25 2018 said:
    Saudi oil minister Mr Khalid al-Falih is blowing hot and cold. On the one hand, he is reminding the world of the role Saudi Arabia plays in stabilizing oil prices by its ability to raise its oil production to 12 million barrels a day (mbd) when needed. He is also giving a clear hint to the Trump administration that any punishment against Saudi Arabia with regard to the murder of the Saudi journalist will be met by a significant cut in Saudi oil production thus sending oil prices soaring.

    On the other hand, he is prevaricating about his promise to raise Saudi production to 12 mbd. He knows that Saudi Arabia couldn’t raise its oil production beyond the 400,000 barrels a day (b/d) that it added to the market two months ago. And even these 400,000 b/d did not come from a rise in production but from stored oil on board oil tankers and on land.

    And with the failure of the talks between Saudi Arabia and Kuwait to agree to restart the oilfields in the Neutral Zone which is shared equally between them, Saudi Arabia has lost the opportunity to add 250,000 barrels a day (b/d) more to the market on top of the 400,000 b/d it already added two months ago.

    Saudi Arabia has no spare production capacity.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




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