Saudi Arabia Seen to Cutting Oil Production Slightly

Saudi Arabia’s crude oil production fell slightly by 100,000 barrels per day (bpd) in August, an industry source told Reuters on Wednesday, but still maintained historically high output levels in line with a strategy of defending market share.

The world’s top oil exporter pumped 10.26 million bpd in August, while crude supplied to the market was at 10.18 million bpd, down by about 78,000 bpd from July, the industry source said.

Supply to the market, both domestically and for export, may differ from production depending on the movement of oil in and out of storage.

“Production is‎ based on customers’ needs. It is an indication that Saudi is trying to match the customers’ needs,” the source said.

This week Saudi-based industry sources said the kingdom’s level of crude production was likely to stay around current levels in the fourth quarter as a decline in domestic crude burning for electricity would be offset by rising global demand.

Saudi Arabia’s crude production for July stood at 10.36 million bpd, according to OPEC.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza