A look at OPEC oil production

The US EIA has released a chart of total OPEC oil production:

If OPEC thought prices were too high, they might increase production to avoid triggering structural demand reduction (like mass switching of US drivers to electric cars).

Meanwhile, oil stored in the US is above long term averages:

It looks like the amount stored is creeping up.  Meanwhile US gasoline consumption has been the lowest on record for seven straight months.  Reduced demand should trigger reduced production by OPEC to maintain a stable price per barrel.  I think that speculative buyers are purchasing the excess and putting it into storage.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: