Saudi Arabia

The oil market: why you should stop, think and only maybe act

It probably occurred to you that the oil price skyrocketed yesterday during trading hours, in the wake of the OPEC reunion held in in Vienna. Following the Algiers summit, last September, the market was hoping for some news regarding a potential output cut and made up a hype mostly from scratch. Consequently, the WTI that [...]

By |December 1st, 2016|Categories: Analyst's Insight|Tags: , , , , , , |

Planned oil supply cuts by producer

Based on available information, the graph below describes the breakdown of planned oil supply cuts plans by country following the 30th November 2016 OPEC agreement, based on a 1.2m b/d cut for OPEC and 600k b/d for non-OPEC producers. Future moves in the implementation of the agreement should now be closely monitored.
Breakdown of planned oil supply [...]

By |December 1st, 2016|Categories: Graph Analysis|Tags: , , , , , , , |

Oil back above $50 as Opec agrees supply cut – FT – 30/11/2016

Compact to axe 1.2m b/d major policy reversal for Saudis. Saudi Arabia will shoulder the bulk of the production cuts, reducing output by almost 500,000 b/d to 10m b/d, while Kuwait, Qatar and the United Arab Emirates agreed to curbs of 300,000 b/d of production.

Source:  FT, 2016/11/30

World crude oil production overview for selected producers

In its U.S. EIA Monthly Energy Review of November 2016, the U.S. EIA updated its overview of global crude oil production for selected producers. Production continues to grow in Iran or Saudi Arabia but it has been declining in the U.S. since early 2015.

World crude oil production overview for selected producers (million barrels per day)

Source: [...]

By |November 24th, 2016|Categories: Graph Analysis|Tags: , , , , , , |

Waiting for the next oil price rise

The coming OPEC meeting that will take place on the 30th November continues to draw much attention from analysts. At the end of September, the OPEC had agreed to cut oil output to a range between 32.5 and 33.0 million barrels per day. Crude prices had immediately increased by 6%. However, the actual outcome of [...]

By |November 17th, 2016|Categories: Analyst's Insight|Tags: , , , , , , , |

Saudi can face economic challenges, insists minister – The Middle East Monitor – 01/11/2016

The Saudi Minister of State has insisted that the kingdom is able to face the economic challenges at local and global levels despite the fall in oil prices, Anadolu reported on Monday. Essam Bin Saad, who is also a Member of the Cabinet and Acting Minister of Culture and Information, also said that the government [...]

By |November 3rd, 2016|Categories: News|Tags: , , |

GCC economies are responding well to the fiscal reforms: IIF – Gulf News – 20/10/2016

Ratio of Government spending to non-oil GDP to decline from 60 per cent in 2014 to 40 per cent by 2020.

Source:  Gulf News, 2016/10/20

By |October 27th, 2016|Categories: News|Tags: , , , , , , , , |

Saudi Arabia’s Energy Minister Warns of Oil Shortage – WSJ – 19/10/2016

Khalid al-Falih lends his voice to theory low oil prices caused energy companies and countries to pull back so sharply from spending that their output will soon fall.

Source:  WSJ, 2016/10/19

By |October 27th, 2016|Categories: News|Tags: , , , , |

Saudi Arabia: are the financial markets fuelling their own distress?

Last Wednesday (Oct. 19th 2016), Saudi Arabia placed its historical first bond issue. And when it comes to the biggest oil producer in the world, things are necessarily out of proportions… The country thus borrowed USD 17.5 billion on the biggest syndicated loan ever placed by a sovereign. This issue was segmented in three tranches: [...]

By |October 21st, 2016|Categories: Analyst's Insight|Tags: , , , , |

Oil production cut announcement in Algiers: OPEC plays it like the FED

It did not take long for media to trumpet that OPEC reached an historical agreement in Algiers on September 28th and for markets to react accordingly. It seems the vast majority of observers and investors are buying the story of a concerted action among OPEC producers, possibly extending beyond OPEC, which will promptly eliminate current [...]

By |October 6th, 2016|Categories: Analyst's Insight|Tags: , , , , , , |