From the Financial Times:
Saudi Arabia scaled down its oil production from record levels last month even as rival Opec members helped push the group’s output to the highest level since 2012.See also this morning's:
Saudi Arabia told Opec it produced 10.4m barrels a day in July, down from 10.6m b/d the month before, according to Opec’s monthly oil market report.The kingdom’s record production in June had sparked talk that Opec’s largest member would continue increasing output as it engaged in a battle for market share against rivals.
Others had said the increase above 10m b/d in recent months had been partly driven by a seasonal need to meet higher summer power demand and to build up stocks at new refineries in the country.
Opec output — led by Saudi Arabia and Iraq — has risen this summer, adding to a global glut. Supply from US shale and other countries outside of Opec was proving to be more resilient than initially expected, the cartel said on Tuesday.Brent crude dropped almost 20 per cent in July and is trading below $50 a barrel, close to a six-year low hit in January. The international benchmark fell $1.63 to $48.78 a barrel by afternoon trading. West Texas Intermediate, the US marker, lost $1.90 to $43.06 a barrel, which is the lowest since March.
“This decline in oil prices came amid a sell-off in crude futures, triggered largely by continued oversupply at a time when incremental global demand has not followed suit,” Opec said in its report.Turmoil in Greece, turbulence in Chinese equity markets and the agreement between Iran and world powers on its nuclear programme “have all contributed to the current bearish market conditions”, Opec said....MORE
..We're still looking for lower prices as production from the MENA countries remains near current production levels, albeit with some constituent changes: lower Saudi Arabia, higher Iraq and Iran, possible wild card in Libya etc. but the contribution of the U.S. to the increase in the oversupply has run it's course....
Oh wait, you just saw it.
