Saudi Arabia, de facto leader of the Organization for the Petroleum Exporting Countries, will extend its voluntary crude production cut of 1 million barrels per day until the end of the second quarter
-> the state-owned Saudi Press Agency said Sunday, citing a source from the country’s Ministry of Energy. Riyadh’s crude production will be approximately 9 million barrels per day until the end of June, the announcement said..$ Russia will trim its production and export supplies by a combined 471,000 barrels per day until the end of June, Russian Deputy Prime Minister Alexander Novak said Source: CNBC https://lnkd.in/eJWWckDe
World oil demand is breaking out to new all-time highs.
Source: Topdown charts
Oil rigs are now contracting the most since the pandemic issues.
As highlighted by Tavi Costa -> US GDP is nearly 30% higher than pre-pandemic levels, while oil production remains at approximately the same level as it was in early 2020 Source: Bloomberg, Crescat Capital
Supply constraints for oil are on the horizon, according to Occidental
Source: CNBC
Saudi Arabia has announced that it will stop pursuing the expansion of its oil production capacity, reversing a key goal in the oil's superpower strategy
Supporters of the energy transition are celebrating, but geopolitics may be more important than what meets the eye. In a nutshell, Saudi Arabia manages together with Russia a very complex political and economic arrangement within the OPEC+ alliance. Riyad and Moscow are coordinating with other producers around the world in order to revive the global oil market, prevent production surplus and keep oil prices higher than non-OPEC producers' policies would. Source: Francesco Sassi
Oil prices jump back above $75 after the US and UK conduct strikes in Yemen.
We are also seeing gold prices up on the news as fears of a larger war resurface. The primary motive for these strikes was the recent Red Sea attacks by the Houthi group in Yemen. Source: The Kobeissi Letter
Red Sea disruption to oil supplies is overblown, argues Julian Lee. Why?
1. Houthis unlikely to attack Russian ships heading to India & China 2. Saudi pipeline can bypass Bab Al Mandab 3. Iraqi & Saudi shipments to the US don't go through the red sea Source: Bloomberg, Ziad Daoud
The US added the equivalent of a new Venezuela in oil supply during Q4, with less rigs producing more oil as technological efficiency ramps up
This supply growth has exceeded expectations and furled OPEC's attempt to put a floor under prices, at least for now. Source: Markets & Mayhem, Bloomberg
