Oil Supply Demand thoughtsOPEC released their monthly oil marketing report today. I see Saudi Arabia produced 10.9 M bbl/d in August, after producing 10.74 M bbl/d in July. Very high production from SA compared to their historical output levels. How long these high levels of production can be sustained is questionable IMO... but we will probably see. From the Demand section of the OPEC report it looks like demand for OPEC oil will continue to be very strong in the coming many months.
Kuwait and UAE continue to inch their production levels higher, but surely these two are close to hitting their max, much like Saudi. The rest of OPEC seems to be unable to consistently deliver the increased oil volumes they are being called upon to produce. OPEC tapped out?
Liquidation of the US SPR set to wind up at end of October. Production from the US shale basins seems to be flat lining also, and there is nothing in the drilling and completion activity that indicates that there will be any surge from US shale.
So, as oil demand remains strong it looks to me like supply might be the limiting factor in the supply demand balance. Oil price going to start creeping up again? I think so.