- Saudi Arabia's status as oil production powerhouse has already been in doubt for years.
- This year's revelations, including today's shed further doubts that the kingdom's production woes are worsening.
- Oil might be due for a sharp price readjustment. If you trade oil and require daily decision support, please contact me for a free trial of our TrendCompass report.
Over the years I’d highlighted the increasingly dubious status of Saudi Arabia as the world’s oil production powerhouse. This year we learned that their flagship oil field Ghawar produced much less than everyone knew, now courtesy of Bloomberg we find another disconcerting bit of information corroborating these doubts as the following chart illustrates:
There can be little doubt that we are facing a grave and serious energy predicament going forward. Our economies and societies better begin preparing yesterday. Links to my research outlining the fundamental supply and demand conditions can be found here:
For those of my readers who – as traders or hedgers – might require daily market reports for oil markets, or other financial and commodity markets, contact me to set you up for a free trial. My e-mail is in the bottom of this article. The following 12-minute presentation provides further details:
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