Half of Saudi Arabia’s production destroyed
09-14-2019, 09:38 PM
#2
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Joined APC: Aug 2013
Posts: 445
I know several guys that work out here as I was formerly in the Oil Industry prior to flying. They say production will be near norms levels by Monday. Most of the production drop was precautionary. No way oil gets up to $100.
09-14-2019, 09:45 PM
#3
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Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,261
Yeah, had a dinner with an oil dude tonight, minimal disruption.
Except for the Houthis... they are about to get seriously disrupted. Shouldn't have efffed with the crude production.
Except for the Houthis... they are about to get seriously disrupted. Shouldn't have efffed with the crude production.
09-15-2019, 06:26 AM
#4
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Joined APC: Jan 2006
Posts: 1,542
Some good info. I think prices will definitely spike.
The attack slashed its output by half, or about 5% of world supply. State energy producer Saudi Aramco lost about 5.7 million barrels per day. For the global oil market, the 5.7 million barrels a day outage is the worst single and sudden supply disruption ever, surpassing the loss of Kuwaiti and Iraqi petroleum supply in August 1990, and the loss of Iranian oil output in 1979 during the Islamic Revolution, according to data from the U.S. Energy Department. Aramco would need weeks to restore full production capacity to a normal level, according to people familiar with the matter.
09-15-2019, 06:31 AM
#6
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Posts: 1,542
Yes, and every time oil reserves are drawn down by even a little, prices spike a few dollars. Reserves are about to be drawn down by a lot.
Like it or not, oil is a commodity traded on the global market, and it’s about to get more expensive.
Now wait until Saudi Arabia starts retaliating for this attack. That will likely spook the oil markets even more.
Like it or not, oil is a commodity traded on the global market, and it’s about to get more expensive.
Now wait until Saudi Arabia starts retaliating for this attack. That will likely spook the oil markets even more.
09-15-2019, 09:40 AM
#7
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Joined APC: Mar 2006
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Posts: 5,160
Originally Posted by iahflyr
Yes, and every time oil reserves are drawn down by even a little, prices spike a few dollars. Reserves are about to be drawn down by a lot.
Like it or not, oil is a commodity traded on the global market, and it’s about to get more expensive.
Now wait until Saudi Arabia starts retaliating for this attack. That will likely spook the oil markets even more.
Like it or not, oil is a commodity traded on the global market, and it’s about to get more expensive.
Now wait until Saudi Arabia starts retaliating for this attack. That will likely spook the oil markets even more.
As for your statement that every time reserves are drawn down prices spike, I don't think that will stand up to backtesting the theory.
09-15-2019, 10:54 AM
#10
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Originally Posted by Floobs
https://mobile.reuters.com/article/amp/idUSKCN1VZ01N
They are saying $100 barrel of oil.
They are saying $100 barrel of oil.
Some analysts expect a smaller oil market rally in the short term. "A small $2-$3 per barrel premium would emerge if the damage appears to be an issue that can be resolved quickly, and $10 if the damage to Aramco's facilities is significant," Ayham Kamal of the Eurasia Group said in a research note.
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