• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 27 mins WTI @ $75.75, headed for $64 - 67
  • 11 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 42 mins Trump vs. MbS
  • 4 hours Uber IPO Proposals Value Company at $120 Billion
  • 2 hours The Dirt on Clean Electric Cars
  • 3 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 11 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 8 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 5 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 14 hours Who's Ready For The Next Contest?
  • 27 mins Poland signs 20-year deal on U.S. LNG supplies
  • 8 hours Nopec Sherman act legislation
  • 10 hours EU to Splash Billions on Battery Factories
Alt Text

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs commodities expert Jeffrey…

Alt Text

Egypt Feels The Squeeze Of Higher Oil Prices

Egypt has just realized one…

Arthur Berman

Arthur Berman

Arthur E. Berman is a petroleum geologist with 36 years of oil and gas industry experience. He is an expert on U.S. shale plays and…

More Info

Trending Discussions

Some Light At The End Of The Tunnel For Oil?

Some Light At The End Of The Tunnel For Oil?

The EIA Short Term Energy Outlook (STEO) published today reports that world oil supply decreased 130,000 bpd and demand increased 380,000 bpd in July compared to June. This reduces the relative production surplus (supply minus demand) by 510,000 bpd to 2.3 mmbpd (Figure 1).

U.S. crude oil production decreased 100,000 bopd in July compared to June.

As I wrote in my post yesterday,

“Don’t get me wrong: this is not going to be anything dramatic but, if I’m right, it will add another month of data that suggests flattening production and increasing demand.” Related: Midweek Sector Update: Have We Reached A Bottom For Oil Prices?

Figure 1. World liquids production, consumption and relative surplus or deficit. Source: EIA and Labyrinth Consulting Services, Inc.

(click to enlarge)

The world still has a huge problem with more than 2 million barrels per day of surplus production and I don’t want to minimize that concern. Nor do I want to offer false hope that oil prices will rebound as a result of this new supply and demand data. Related: The Saudi Oil Price War Is Backfiring

Oil futures have fallen considerably today on news that China will devalue its currency and prices could fall further. I recommend that you read my colleague Euan Mearns’ post today on that troubling possibility.

The significance of the EIA STEO is that we now have two months of data that show the potential beginnings of a trend toward a more balanced market. I await IEA’s Oil Market Report tomorrow for more insight.

By Art Berman for Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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