Opec Production Up As Saudis Tout More In The Pipeline

A familiar refrain was heard in Moscow this week as Saudi Energy Minister Khalid al-Falih attributed the recent surge in oil prices to “financial markets” rather than supply shortages. Nevertheless, Saudi Arabia and Russia combined to add 210,000 b/d additional supply in September and both countries say that more is on the way.

Mr Falih’s comments came on 3 October at the Russian Energy Week in Moscow, where the minister claimed that output has hit 10.7mn b/d this month and that November output should be higher still. Of course, output levels over just two and a half days are often misleading and time will tell whether this will be sustained over the course of October.

Certainly the kingdom’s much-touted production increases following June’s Opec meeting fell short of expectations as an initial 380,000 b/d June surge failed to ignite further gains ( MEES, 10 August ). This sparked renewed debate over the viability of Saudi Arabia’s much vaunted but never tested 12.5mn b/d claimed production capacity. (CONTINUED - 1486 WORDS)


table Opec Wellhead Production, September 2018 (Mn B/D, Mees Estimates)
chart Russian Output Soars To Post-Soviet Record In September (Mn B/D)
chart Saudi Arabia Says It Is Producing At A Record 10.7mn B/D This Month
chart The USA Produced A Record 10.96mn B/D In July, With Latest October Forecasts Running This Close
table Opec 2017 Oil Export Revenues Rose A Massive $125bn, 2018's Gains Could Hit $200bn ($Bn)