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Saudi Production Comments Send WTI Sliding To $45 Handle
Following Friday's manic quad-witching melt-up in oil (and everything else), the exuberance (surprise surprise) is fading as fundamental reality is slapped back onto the face of the energy complex by Saudi Arabia. As Reuters reports, Saudi oil minister Ali al Naimi also said the kingdom was now pumping a record high 10 million barrels per day (bpd), and would only cut if non-OPEC countries cut production. The 'supply' weakness in crude has been tempered somewhat by a tumbling USD (EUR surging) for now (and also by news from Sinopec of major capex cuts).
Saudi Arabia has stood firm on output, saying it would only consider cutting it if other producers outside OPEC also joined.
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Saudi oil minister Ali al Naimi also said the kingdom was now pumping around 10 million barrels per day (bpd), which could indicate an increase of 350,000 bpd over its February production.
Analysts at Barclays forecast on Monday that if OPEC production held near current levels of near 30 million bpd, the market surplus would expand from 900,000 bpd to 1.3 million bpd.
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"In the past 15 years, the global economy was defined by rising commodity prices, zero interest rate policy, and a weak USD. This cycle has now gone into reverse with a decelerating industrial economy in China and the rise of U.S. shale," Bank of America Merrill Lynch said in a report.
"A combination of a strong dollar, higher interest rates and subdued growth may keep commodity prices in check in 2015," it added.
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Saudi Production Comments Send WTI Sliding
Never underestimate the value of just shutting the hell up.
no one cares about wti price except america and shale prducers . World cares about brent crude prices . It dipped under 55 $ handle .
1
Clipped from a daily report I recieve:
That's amazing when you think about the U.S. and how it has 1500 rigs running at times.
2014 - lifted ban on crude oil exports (B Obama, Commodities Deregulation)
2014 - Saudi Arabia decides to keep oil production at a high rate to shake up the market
- USA can't risk loss of USD Liquidity by lowering Oil Production
http://oilprice.com/Energy/Oil-Prices/Could-This-Be-Saudi-Arabias-Best-Kept-Secret.html
(I thought a lot of folks already think they peaked)
look value since 18/03 they have fixed it at 45 as threshold.
it won't go lower until they have decided so.
rigged as everything else.
period.
pump it baby, pump it! some day the saudis will look back and say, why tf didn't we plan ahead...
It only costs $45 a barrel to pump it back into the ground.
In other words, just like the international banking industry, every major player in the world oil industry should join a production cartel. After all, we are in a global economy, aren’t we? That doesn’t mean we should stop centralizing and rigging markets to our advantage? Local antitrust laws against that sort of thing be damned.
So what shall we call our new cartel? Let’s see, G20 has already been used. How about GOBANK, or GOPAC, or GOPUKE, or GOPOUNDSANDSUCKAS, or ……….
Did he just say higher interest rates? Where are there higher interest rates? Oh, he meant EXPECTATIONS of higher interest rates. Expectations of Godot showing up any time now.
hahahahahahahahahahahahahahahahaha
The US should boycott ME oil and use our domestic oil and keep the billion$ in the US economy.
But our gubmint is too fucking stupid.
Ya, that makes too much sense.
US Leaders don't really make decisions. They have phone calls and meetings, then just follow advice.
Either .... silver has to go up to $40 .... or .... WTI has to come down to $20 .... to reach historic price ratio ! Three ounces of silver (4 silver dollars) for a barrel of oil is high ! You can keep .... your stinky oil .... I'll ride a bike .... and keep my shiny !
I have now cornered the market on Condom Lube. I figure it is like making Liquor in Prohibition. Weha
A month or so ago I was paying $1.90 a gallon for regular unleaded. Now it's going for $2.39 a gallon. I haven't followed the ppb on a daily/weekly basis but it seems to keep going down. Have I missed something or is it just more manipulation and consumer fucking?
It has to do with the fact that you don't notice that the refineries actually turn the oil into gasoline and the supply of gasoline isn't the same as the supply of oil. Eventually the POO willl catch up the to price of gasoline or vice-versa but right now the refineries are at less than 90% utilization and gas is in short supply. My normal station was actually out of Premium and Mid Grade last night when I went to fill up. That never happens unless there are refinery issues or the pump is broken. I am in Austin within spitting distance of a Valero refinery and this was a Valero station. When I came back 2 hours later the truck was gone and the tanks were full and I was able to get premium but normally, they are never out of anything.
Thanks I asked the same question.
But couldn't a big company plan to miss deliveries one day a week for a couple of month and drive the price of Gasoline up.
And if there are only 6 big Refiners in the USA; BP, Shell, Exxon, Chevron, Valero, Conoco... they could just limit Saturday deliveries and no Deliveries on Sundays... then miss a few a month in collusion with the other Refiners.
wrs1, thanks!
Saudia Arabia has no influence other than jawboning and dumping. They can't raise their production enough to affect prices and they are scared to death of the rising production out of the shale plays in the US because the writing is on the wall, they are nobodies now.
All of OPEC is going to pump what they want too just like America is now.
When this happens the real price sets in 20 bucks.
A tumbling US dollar? The dollar just recently completed a 10 month run of over 20% to the upside resulting in a nearly 12 year high ten days ago. Since then its drawn back 2.2%. That's hardly what I would call 'tumbling'. LOL More wishful thinking from ZH.
It flash crashed over 5% in one day last week and appears to be headed back down to test that bottom again and tumbling is a decent descriptor, it's not hyperbole. Crashing would be hyperbole. Look at the weekly and the daily, neither one looks good, they look toppy. Of course the dollar bulls have turned every other drop around into a bigger gain the last nine months but this one may not happen as all the gains since BLS bullshit day have been erased now, that is a 4% turnaround.
This works only if the wahabis are sure the price of oil is going higher soon. Yeah they have cash reserves but I doubt they want to spend them forever.
Who has Vlad's suicide watch tonight?
The rest of OPEC is gettiing burned by Saudis when they wake up and pump as much as they want too.
Then reality will hit all.