• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 5 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 41 mins Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 14 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 15 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 5 hours Coal Boom in Asia is Real and a Long Trend
  • 3 hours Solar Panels at 26 cents per watt
  • 8 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
  • 8 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 8 hours US to become net oil exporter in November: EIA
  • 5 hours US Shale Drilling lacks regulatory body.
  • 13 hours Trudeau approves Trans Mountain Pipeline
  • 16 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 15 hours The Plastics Problem
Alt Text

OPEC Discord Grows As Saudis Hint At ‘Delayed’ Meeting

Saudi Energy Minister Khalid Al-Falih…

Alt Text

Canada Can’t Get Its Pipeline Problem Under Control

Canada’s once-booming oil industry has…

Alt Text

Are Oil Prices About To Bounce Back?

Money managers have gotten increasingly…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Trending Discussions

Low Oil Prices Force Saudis To Re-Shape Domestic Energy Policies

Seventy-six years to the day after Ol’ Blue Eyes recorded ‘All or Nothing At All‘, and the Federal Reserve finds itself in a similar predicament. For betwixt now and 2pm ET, we are set for markets to be pushed and prodded around by uncertainty, before we hear whether the Federal Reserve has hiked interest rates for the first time in nearly a decade. After yesterday’s voracious rally in the crude complex, prices are retracing today, and will likely be ushered around by broader market sentiment and dollar meanderings.

Moving swiftly on, overnight economic data has arrived courtesy of Japan; imports fell more than expected (-3.1% YoY), while exports rose at a lesser pace (+3.1% YoY). Accordingly, Japan’s trade deficit widened to 570 billion yen, the largest deficit since February. Meanwhile, tales of retail sales from the UK came in just shy of consensus on a YoY basis at 3.7%.

Across the pond to the US and we have had weekly jobless claims, which have come in at 264k, much better than the consensus of 275k. Not wanting to further add to the wave of Fed speculation ahead of today’s decision, but……if you take a peek at the weekly jobless claims over the last five decades, the low we saw last month of 266k (on the 4-week moving average) was the lowest level since December 1973. With an unemployment rate at a 7-year low of 5.1%, there is little objection to an interest rate hike coming through from the jobs data. Related: Oil Industry Influence Waning Amid Oil Price Slump

(Click to enlarge)

There’s a couple of tidbits out today about Saudi Arabia. First up, its reserves continue to shrink. The IMF projects that Saudi Arabia’s budget deficit will exceed 400 billion riyals ($107 billion) this year as lower oil revenues hurt the economy. Oil generally accounts for 90% of government revenue, whereas this year it will only account for 81%. Given this turn for the worse, the government may assess removing subsidies on gasoline, which currently costs 16 cents per liter, while a shift towards renewables may also be considered. Related: For Canadian Oil Sands It’s Adapt Or Die

Secondly, Saudi Arabia’s state-owned oil company, Saudi Aramco, has confirmed that the acting president and chief executive, Amin H. Nasser, will assume these positions on a permanent basis. And in a final OPEC-related tidbit, an internal report from the cartel projects oil prices rising at a steady $5 per annum, to reach $80 by 2020.

(Click to enlarge) Related: The Shale Delusion: Why The Party’s Over For U.S. Tight Oil

Finally, Chile last night experienced an earthquake measuring 8.3 on the Richter scale. It has a population of ~18 million people, of which 1 million have been evacuated. Chile is the fifth largest energy consumer in South America, and imports much of its fossil fuel needs. According to #ClipperData, it imported 158,000 barrels per day of oil in August from its typical three sources: Brazil, Ecuador, and Uruguay. The US supplies it with refined products to supplement product supply from its three refineries, and total petroleum consumption is currently at 340,000 bpd, according to EIA.

By Matt Smith

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





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