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Saudi Arabia could 'flush' the oil market with a flood of supply to regain control over prices in the face of rising US production, crude expert says

Mainecat

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Mainecat

Mainecat

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Fuckin Joe pumpin US oil……

Saudi Arabia could 'flush' the oil market with a flood of supply to regain control over prices in the face of rising US production, crude expert says

Saudi Arabia may "flush" the market with a flood of supply that would sink prices, an expert said.

That comes as OPEC+ concluded its latest meeting where members pledged voluntary production cuts without giving firm commitments.

Meanwhile, US crude output has been on a tear this year, hitting new record highs.

Saudi Arabia may flood the market with more oil supplies, reversing its production curbs, as the world's top crude exporter tries to regain control of prices, an energy market veteran said.

That comes as OPEC+ concluded its latest meeting where members pledged voluntary production cuts without giving firm commitments, prompting oil prices to fall.

"We've more or less been saying potentially Saudi needs to just flush this thing out," Paul Sankey from Sankey Research told CNBC on Friday.

He estimated that Saudi Arabia has capacity to ramp up its output by an additional 2.5 million barrels a day.

For now, OPEC's de factor leader is trying to prop up crude by pumping less. On Thursday, it extended its cut of 1 million barrel per day into the first quarter.

But Sankey noted Saudi Arabia shocked markets in 2014, when it similarly tried to flush the market by sinking crude prices from highs of around $110 a barrel to $50.

The drop in prices eventually forced higher-cost producers to exit the market as pumping was no longer profitable. Meanwhile, Saudi Arabia continued to pump as it was better able to withstand lower prices. As supplies from its rivals disappeared, the kingdom was able to regain traction over prices.

Back then, like today, booming US oil supply is a headache for OPEC and Saudi Arabia. And Sankey said Friday that the oil cartel has "a huge problem with US production levels."

In fact, US crude output has been on a tear this year, with monthly production hitting a record high in September at more than 13.2 million barrels a day, according to data from the Energy Information Administration.

https://finance.yahoo.com/news/saudi-arabia-could-flush-oil-053428962.html

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akvanden

akvanden

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Posted (edited)
12 minutes ago, racer254 said:

Lol, who's deflecting.  I told you it would happen, the media is trying to push a narrative.

You certainly did tell, and then I asked why and you deflected to the media, which has nothing to do with oil production. 
 

Do you not understand your statement? Can you articulate who’s lowering the gas prices? Or are you sticking with the media…?

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akvanden

akvanden

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7 minutes ago, spin_dry said:

Oil production under Biden has been a major headache for opec. 

So then OPEC is going to lower prices for Biden so he can get reelected. Or wait….. they want to increase prices to push Biden out because he’s producing too much?!?? 
 

I wish racer was here to help explain.

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spin_dry

spin_dry

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9 minutes ago, akvanden said:

So then OPEC is going to lower prices for Biden so he can get reelected. Or wait….. they want to increase prices to push Biden out because he’s producing too much?!?? 
 

I wish racer was here to help explain.

He sneaking around at the capital with a flashlight checking license plates. 

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Jimmy Snacks

Jimmy Snacks

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Local grocery store gives out gas coupons with your regular receipt and I scored a .75 discount per gallon the other day so my answer to who lowers my gas prices is….Family Fare Market.👊🏻😂

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