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Saudi Arabia cut oil output in July to 9.8M bpd from 10.1M bpd in June, sending 9.7M bpd to the...

Saudi Arabia cut oil output in July to 9.8M bpd from 10.1M bpd in June, sending 9.7M bpd to the market and putting 100K bpd in storage, Reuters reports. Saudi had boosted oil production to the 30-year high of 10.1M bpd in April as it stepped up output to make up for the fall in Iranian supplies due to the international sanctions.
Comments (2)
  • Mike Walker
    , contributor
    Comments (256) | Send Message
     
    Reduction of 300,000 BOPD.

     

    Part of it in response to lower prices.

     

    Part of it likely a concern they were pulling too hard on their reservoirs.
    9 Aug 2012, 04:54 AM Reply Like
  • Glenn Doty
    , contributor
    Comments (1116) | Send Message
     
    They increased production to deal with the loss of product resulting from Iranian sanctions, because they don't want Iran to get a nuclear bomb.

     

    http://seekingalpha.co...

     

    But they over-compensated. There was simply too much new production from America (!!!), and in a year without sanctions there would likely have been a meeting of OPEC to deal with the international excess. Now, no meeting is necessary, Saudi Arabia is just backing off.
    9 Aug 2012, 10:42 AM Reply Like
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