Friday, August 12, 2011
According to OPEC, Saudi Arabian production increased to 9.75mbd in July. This is a modern record (though they produced more back in the 1980-1981 timeframe). However, they didn't achieve the 10mbd that press reports were suggesting back in June. Whether because the press had the target wrong, or because they couldn't quite manage the goal, we are left to speculate.
It will be very interesting to see if they can maintain or further increase this level. However, if they can't, the current stock market chaos and drop in oil prices will provide them the perfect cover to reduce production on claims of lower demand.
The increase from May to July is about 800 or 900kbd - still some way short of making up for the loss of Libyan production.