- Joined
- Mar 24, 2009
- Messages
- 16,743
Saudi output points to healthier oil demand
Saudi Arabia is by far the world`s largest oil exporter. Thus, when it raises its production, oil prices usually fall. Yet, when Ali Naimi, Saudi oil minister, said last week Riyadh was pumping more than 10 million barrels a day, prices barely moved a few cents.
Oil traders were in disbelief. The International Energy Agency estimated that in October the kingdom pumped 9.45 million barrels a day and OPEC itself put Saudi production at 9.47 million b/d in the same month. The level of production that Mr. Naimi stated suggested a huge increase, in only a few weeks. Moreover, the 10 million b/d is a psychological barrier -- a level the kingdom has not reached since the aftermath of the second oil crisis in 1979.
Read the full article here.
Saudi Arabia is by far the world`s largest oil exporter. Thus, when it raises its production, oil prices usually fall. Yet, when Ali Naimi, Saudi oil minister, said last week Riyadh was pumping more than 10 million barrels a day, prices barely moved a few cents.
Oil traders were in disbelief. The International Energy Agency estimated that in October the kingdom pumped 9.45 million barrels a day and OPEC itself put Saudi production at 9.47 million b/d in the same month. The level of production that Mr. Naimi stated suggested a huge increase, in only a few weeks. Moreover, the 10 million b/d is a psychological barrier -- a level the kingdom has not reached since the aftermath of the second oil crisis in 1979.
Read the full article here.