Saudi oil production to average 10.5M bbl/day in Q3, PIRA says

|By:, SA News Editor

Saudi Arabia is set to pump 10.5M bbl/day of crude in Q3, a 1M bbl/day increase over Q2's average production and its highest quarterly level of sustained production since at least the early 1980s, energy consultancy PIRA says.

With Libyan production at its lowest level since 2011, Iranian supply constricted by sanctions, and unreliable output from countries like Iraq and Nigeria, it's "the tightest physical balance on the world oil market I've seen for a long time," PIRA CEO Gary Ross says. "There really is very little flexibility left in the system."

Without U.S. shale, Q3 global supply would be short ~1.5M bbl/day and prices would be dramatically higher, Ross adds.

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