• 3 minutes Tesla is the Most American Made Car!
  • 7 minutes Should the US government be on the hook for $15 billion?
  • 11 minutes Forecasts for oil stocks.
  • 15 hours U.S. Presidential Elections Status - Electoral Votes
  • 40 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 15 mins China Producing Half of the Worlds Electrical Vehicle Batteries is Experiencing Explosive Pollution
  • 5 hours California breaks 1 GW energy storage milestone
  • 1 day Colonial pipeline hack
  • 2 days Severe Drought in the West Will Greatly Reduce Electrical Production from Hydroelectric Turbines.
  • 1 hour Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 3 days Survival of Oil and Gas industry.
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudi Arabia To Boost Oil Production To 10 Million Bpd As Prices Rise

Saudi Arabia is expected to hike its crude oil production to 10 million barrels per day (bpd) by the end of 2021, up by 1.5 million bpd from May, due to rising global oil demand, Goldman Sachs said on Tuesday.

Farouk Soussa, Middle East and North Africa (MENA) economist at Goldman, raised his forecasts for Saudi Arabia’s oil production by 500,000 bpd from previous estimates, according to a note carried by Bloomberg.

“We see risks to the oil sector as being significantly skewed to the upside,” Soussa wrote in the note.

Goldman Sachs continues to believe that Brent Crude will hit $80 per barrel this summer as global demand quickly recovers.

In May, Saudi Arabia pumped just below 8.5 million bpd, having boosted its production by 345,000 bpd from April, as per the OPEC+ deal to gradually ease the cuts, OPEC’s secondary sources showed in the cartel’s monthly report last week.

Production in Saudi Arabia is set to rise to 9.5 million bpd by the end of July. Oil output is set to reach 10 million bpd by the end of this year, and 10.5 million bpd next year, according to Goldman Sachs. Related: Could Energy Ties Bring Saudi Arabia's Conflict With Iran To An End?

The global demand rebound and the strong domestic recovery in oil demand also prompted Goldman to raise its economic growth projections of Saudi Arabia. The U.S. investment bank now sees the Saudi economy rising by 4.5 percent in 2021, compared to an earlier forecast of 2.5 percent growth.

To compare, the International Monetary Fund (IMF) expects the Saudi economy to grow by 2.9 percent in 2021.

The IMF also said in its latest MENA regional forecast in April that higher oil prices and a rebound in the global economy and oil demand are set to lower the fiscal breakeven oil price of the major Middle Eastern oil producers, with the breakeven oil price for Saudi Arabia dropping to $65.70 in 2022 from $77.90 in 2020.

Meanwhile, Saudi Arabia’s non-oil sector grew by 2.9 percent in the first quarter of 2021, official data from the Kingdom showed on Monday. Overall GDP, however, declined by 3.0 percent year over year due to an 11.7 percent contraction in the oil sector in Q1 2021.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • George Doolittle on June 16 2021 said:
    Peak production was 13 million barrels a day?
    Quite the collapse indeed as the USA continues to be flooded with product both unrefined and not...as well as still exporting propane on a massive scale and still exporting natural gas both piped and in lng form.

    Long $etr Entergy
    Strong buy

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News