RE:RE:Here comes Venezuela!Have to agree with liljohnny here. All this extra oil hitting the market is starting to really add up.
Venez (minimal as it is), Iran allowed to go full throttle (they are exempt from Opec curtailments and Joe not interested in enforcing sanctions), US production up another 1M bbls/day from a year ago.
Opec African nations not interested in cutting back as per Opec demands.
NA producers are their own worst enemy by adding production wherever they can as well.
All at Saudi's expense? How long do you think MBS is going to allow everyone to eat his lunch?
Maybe MBS should teach all a little lesson again by removing their 1M bbl/day voluntary cut and throw it back into the market as well.
Perhaps if Oil price goes into the $60's (or less), they will be reminded who the boss is.
Sometimes a little pain is required.
MigraineCall wrote: Fortunately a 64,000 bpd MOM increase is minimal, and not an issue.
Venezuela is still in very rough shape, requiring billions in capital investment after cannibalizing it's facilities in order to keep a small amount of oil flowing during sanctions.
The USGC refiners are scrambling to find any alternate sources of heavy or medium sour crude to replace what is being lost from Mexican imports now staying in Mexico going to the new Olmeca refinery.
Panama canal issues complicate things, further making the Atlantic basin a market on it's own.
TMX will only add to these losses.
Bullish for Canadian crude.
liljohnnyjoke wrote: https://oilprice.com/Latest-Energy-News/World-News/Venezuelan-Output-Rises-to-850000-Bpd-Amid-Sanctions-Relaxation.html
everyone increasing production and taking SA's 1Mbpd production cut market share away. they may say screw and reopen the their taps for a while