Saudi Arabia is having to significantly cut back on the amount of oil it’s supplying to world markets. Terror states like Libya and Central American dictators like Hugo Chavez’s successor are drowning in oil they’re having a hard time selling.
Oil prices are falling due to an increase in global supply, largely because of an increase in production in the heavily over-regulated U.S., to include things like fracking (even the useful idiot leftists who’ve been demanding an end to fracking haven’t been so useful to OPEC these days):
The amount of oil Saudi Arabia supplied to markets fell last month, according to a person familiar with the country’s oil policy. Its production climbed.
The world’s biggest crude exporter supplied 9.36 million barrels a day last month, a reduction of 328,000 barrels daily from August, according to the person, who asked not to be identified, citing policy. The supply figure excludes what’s stored. Saudi Arabia produced about 100,000 barrels a day more than in August, the person said.
Crude collapsed into a bear market this month as Saudi Arabia and other producers deepened price discounts for their oil, amid speculation they’re competing for market share in Asia. Global supplies are rising as the U.S. pumps the most in almost three decades and Russia’s output nears a post-Soviet record. Brent, the global oil benchmark, rose more than 1 percent immediately after the person’s comments.
“If this was an intentional cut by Saudi Arabia, I’d expect them to have cut the actual amount of oil produced and not just the supply to market,” Richard Mallinson, a London-based analyst at Energy Aspects Ltd., said by phone. “More is being read into the fluctuations than should be. I don’t see anything in these latest numbers to indicate a unilateral production cut.”
That part by Mallinson about advising that people shouldn’t read too much into Saudi Arabia’s supply to the market because they didn’t cut production is somewhat belied by a Saudi Prince’s comments earlier this month. As Shoebat.com reported, Prince Alwaleed bin Talal was more than just a little concerned about what the increase in oil supply would do to the Saudi economy.
The increased supply in places like the U.S. and Russia is also affecting Central American tyrants and a certain African country run by jihadists:
Angola, Libya and Venezuela have all said OPEC needs to take action on prices, with the Latin American nation’s President Nicolas Maduro calling for an emergency meeting in a televised address Oct. 17. Global markets are oversupplied by about 1 million barrels a day and OPEC needs to reduce collective output by at least 500,000 barrels a day, Libya’s OPEC governor Samir Kamal said by e-mail yesterday, adding that his comments reflected personal views.
Have you thanked an oil driller today?