Saudi Arabia Reduced Its Crude Oil Production in July
NYMEX WTI Crude Oil -0.5% closed at 67.28 bbl (USO) 13 August 2018
- OPEC released its monthly Oil Market Report Monday.
- Saudi Arabia did reduce Crude Oil production in July following preliminary reports last week, despite its agreement to raise output, following recent OPEC/NOPEC meetings.
- Secondary sources reported that Saudi Arabia cut oil production by 53,000 BPD (barrels per day) to 10.4-M BPD.
- However, overall, OPEC’s Crude Oil output rose by 41,000 BPD (barrels per day) to 32.3-M BPD in July.
- Non-OPEC Crude Oil supply in Y 2018 was revised up by 73 tb/d from the previous MOMR to average 59.62 mb/d, representing an increase of 2.08-M BPD year/year. The Key reason for this upward revision was an adjustment for the Chinese supply forecast due to the higher-than-expected Crude Oil output in 1-H of Y 2018.
- In Y 2018, Crude Oil demand growth is anticipated to increase by 1.64 mb/d, 20 tb/d lower than last month’s projections, mainly due to weaker-than-expected Crude Oil demand data from Latin America and the Middle East in Q-2 of Y 2018.
- Total Crude Oil demand is anticipated to reach 98.83 mln bpd. For Y 2019, world Crude Oil demand is forecast to grow by 1.43 mln bpd, also some 20 tb/d lower than last month’s assessment.
- Total world consumption is anticipated to reach 100.26 mln bpd. 2018, demand for OPEC crude is expected at 32.9 mln bpd, 0.6 mln bpd lower than the Y 2017 mark. In Y 2019, demand for OPEC crude is forecast at 32 mln bpd, around 0.8 mln bpd lower than the 2018 mark.
|NYSEArca:USO||14.01||13 August 2018||-0.07||14.01||14.05||13.68||27,379,600|
|HeffX-LTN Analysis for USO:||Overall||Short||Intermediate||Long|
|Neutral (0.08)||Neutral (-0.22)||Neutral (0.11)||Bullish (0.35)|
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Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.
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