America Now 'Pumping More Oil' than Saudi Arabia, Russia — USA UNLEASHED

Irving Hamilton
November 9, 2018

The EIA's estimates that US oil production would hit 12 million bpd sooner than expected, and another inventory report showing a crude build further depressed oil prices on Wednesday.

That's a threefold increase from the US low reached a decade ago, and a 22.2 percent rise just this year.

Russian Federation pumps an average of 10.8million bpd and Saudi Arabia, about 10.5million bpd.

US oil flirted with bear market territory on Thursday as investor concerns about overproduction sent prices lower. The kingdom has lifted output close to record levels, while Libya is pumping the most in five years.

The market focused on record US crude production and signals from Iraq, Abu Dhabi and Indonesia that output will grow more quickly than expected in 2019.

Brent crude, the global benchmark, settled down 6 cents to US$72.07 a barrel, bouncing off its post-EIA session low on support from earlier reports that Russian Federation and Saudi Arabia are discussing whether to cut crude output next year.

China's October crude imports surged 32 percent from a year earlier to 40.80 million tonnes, or 9.61 million barrels per day (bpd), data from the General Administration of Customs showed on Thursday, climbing from 9.05 million bpd in September. Losses from those two OPEC members threatened the biggest supply disruption since the start of the decade and Brent crude eventually peaked above $86 a barrel last month.

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Commenting on this data, "Once again, the USA has shown that when it is economic to do so, it can increase production at a greater pace than Saudi Arabia".

On Monday, the United States restored sanctions that target Iran's oil exports, as well its banking and transport sectors.

"We also saw demand from China's independent refineries rise", it added.

The U.S. Energy Information Administration said this week it expects output to top 12 million the middle of 2019, thanks to shale oil.

Also Thursday, Iran's representative to OPEC, Hossein Kazempour Ardebili, claimed that Russian Federation and Saudi Arabia were helping Trump by increasing their own production to keep oil prices low.

"The market is now going to look to Opec and non-Opec producers to rein in production as the U.S. has granted eight countries waivers from sanction, which in essence adds to supply", said Andrew Lipow, president of Lipow Oil Associates in Houston.

"Saudi Arabia and Russian Federation have increased production, and prices have come down $15 a barrel", Hossein Kazempour Ardebili, Iran's representative to OPEC, said in an interview.

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