NCRI – Saudi Arabia has increased its level of oil production, according to a report from Jadwa Investment.
The report said that preliminary data shows that Saudi crude production was up 6 percent in the second quarter of 2015 year-on-year at 10.3m bpd. The elevated level of production is due to increasing domestic demand and a desire to hold market share, reports said.
Saudi crude consumption is expected to reach 3 million bpd in the third quarter of this year as domestic demand peaks due to the summer months.
A potential agreement between the Iranian regime and the P5+1 paves the way for gradual increases in output in H2 2015.
The worldwide Energy Agency on Friday said global demand for oil would slow next year and warned that crude prices could resume a downward spiral.
World oil demand growth appears to have peaked in the first quarter at 1.8 million barrels per day, the IEA said. Further, even if the Iranian regime is allowed back into the world oil export market it could be years before its back at full capacity, reports said.
Crude prices have come down from as high as $115 a year ago to below $60 but the IEA said: “The bottom of the market may still be ahead”.