• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 6 hours Is California becoming a National Security Risk to the U.S.?
  • 23 hours Pence says South China Sea Doesn't Belong To Any One Nation
  • 1 day Anyone holding Nvidia stock?
  • 13 hours Why does US never need to have an oil production cut?
  • 2 days UK Power and loss of power stations
  • 1 day Germany Discusses Lifting Ban on Deporting Syrians
  • 1 day China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
  • 5 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 2 days OPEC Builds Case For Oil Supply Cut
  • 2 days At U.N. climate talks, US Administration Plans Sideshow On Coal
  • 2 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 2 days Good Sign for US Farmers: Soybean Prices Signals US-China Trade Deal Progress
  • 2 days Plastic Myth-Busters
Alt Text

Is An Oil Supply Crunch Inevitable?

The IEA’s latest World Energy…

Alt Text

Saudis Study Potential OPEC Collapse

Saudi Arabia is studying the…

Alt Text

Aramco CEO: Expect IPO In 2021

Aramco CEO Amin Nasser has…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Saudi Arabia Tries To Reassure Markets After Oil Price Plunge

Saudi Arabia’s Oil Minister Khalid al-Falih has tried to reassure markets of The Kingdom’s commitment to the rebalancing of crude oil’s fundamentals, after benchmarks yesterday slid down on an announcement that Saudi Arabia had increase production in February to 10.01 million bpd.

The Kingdom, al-Falih said,”is committed and determined to stabilize the global oil market by working closely with all other participating OPEC and non-OPEC producers.” Al-Falih then went on to explain that the self-reported level of production does not necessarily reflect the actual amount supplied to the market.

It was Saudi Arabia’s self-reported figure for February that pressured prices, with WTI diving to $47.72 in midday trading, and Brent touching the psychologically significant $50 barrier, at $50.78 a barrel. Secondary sources, which OPEC uses to calculate each member’s monthly production, pegged the Saudi output at 9.797 million barrels daily.

The 10.01 million bpd are still below Saudi Arabia’s self-imposed quota of 10.058 million barrels daily under the OPEC agreement, but they are 263,300 bpd more than the country’s January output—a fact that is not lost on the already excessively volatile market. Related: An OPEC Deal Extension Won’t Affect Oil Prices

On the flip side, OPEC’s secondary sources estimated that the overall February output of the cartel had shrunk by 139,000 bpd to 31.96 million bpd, despite a build in Nigerian production and Iraq’s failure or unwillingness to cut as agreed to 4.351 million bpd. OPEC’s second-biggest producer pumped 4.414 million bpd last month.

Al-Falih explained the figure as follows: “The difference between what the market observes as production, and the actual supply levels in any given month, is due to operational factors that are influenced by storage adjustments and other month to month variables.”

Yet, the increase could be seen as a hint from the Saudis that they no longer wish to shoulder more than their fair share of the production cut, especially as the cut seems to be failing to achieve its goal, thanks to growing production outside OPEC.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • jack ma on March 16 2017 said:
    SA is almost bankrupt. Kerry SA dumb and dumber. China buys cheap oil and loans money to Russia. So funny. IMHO

Leave a comment




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