• 6 minutes Can the World Survive without Saudi Oil?
  • 8 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 12 minutes Iranian Sanctions - What Are The Facts?
  • 2 hours Judge Approves SEC Settlement With Tesla, Musk
  • 5 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 3 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 4 hours Censorship has a price: Google’s CEO Defends Potential Return to China
  • 1 hour Gold price on a rise...
  • 1 hour Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 3 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 4 hours $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 2 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 2 hours Saudis Threaten Retaliation If Sanctions are Imposed
  • 49 mins Dow logs 830-point loss
  • 2 hours Saudi Crown Prince to Trump: We've Replaced All Iran's Lost Oil
  • 3 hours Mexico State Oil
EIA Inventory Count Accelerates Oil Price Slide

EIA Inventory Count Accelerates Oil Price Slide

Oil prices continued to slide…

Are U.S. Oil Exports Really Unstoppable?

Are U.S. Oil Exports Really Unstoppable?

U.S. crude oil exports hit…

UBS Sees OPEC Production Falling This Month

Rigs

Analysts at UBS warned on Tuesday that OPEC’s crude oil production may fall this month—after having hit an eight-year-high in July—as attacks and growing unrest in Iraq, Nigeria and Libya may reduce their respective outputs.

In July, OPEC’s output went up by 150,000 b/d to 33.39 million b/d, as Saudi Arabia increased production to all-time highs and Iraq pumped more, figures by the International Energy Agency (IEA) show. OPEC itself said last week that Saudi Arabia had reported production of 10.67 million barrels per day, up by some 120,000 bpd on the prior month.

Looking to August data, UBS now expects Iraq’s production to decline after Islamic State fighters killed five people in an attack on the largest oil field in Kirkuk, Bai Hassan.

UBS analysts also see Nigeria’s production down this month, with no respite in militant attacks there.

Over the weekend, Petroleum Minister Ibe Kachikwu said that Nigeria’s losses in daily oil production due to militant attacks had hit 900,000 barrels.

UBS is not optimistic on increased Libyan output either, despite the de facto agreement to reopen key ports in the east. Earlier this month, Libyan militia Operation Dignity attacked the Zueitina oil terminal near Benghazi. The attack was repelled by Petroleum Facilities Guard forces, which are another militia operating in the country.

Related: What The Fall Of OPEC Means For Global Oil Markets

Since OPEC said it would hold an informal meeting on the sidelines of the International Energy Forum in Algeria on September 26-28, rumors and commentaries have been piling up on whether the cartel would take any action to support crude prices and agree on some sort of production freeze.

UBS sides here with the majority of analysts who do not expect a production freeze.

“Our view is that agreeing a freeze is likely just as difficult as in April…it's arguably not as needed … and likely has little effect on actual market balances, with most of OPEC running flat out and Saudi output seasonally ramping down by September after peak summer demand,” CNBC quoted UBS analyst Jon Rigby as saying in a report.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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