“Product markets in the Atlantic Basin weakened during July, despite gasoline demand hitting record levels in the United States during the peak of the driving season”, OPEC said. It fell as much 69 cents earlier in the session on concerns about Saudi crude production in July.
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Shortages of basic foods and medicines have hit Venezuela hard, with looting and complaints of hunger ever more common. The draw, amid U.S. East Coast refinery runs hitting 2011 lows, exceeded expectations for a gasoline drawdown of 1.1 million barrels.
And as if to drive home this point, OPEC stated in its monthly report that the weak demand for global oil may persist, considering the fact that prices have crashed through the roof in a three-month low.
PDVSA in turn blames problems on sabotage and global campaigns to defame it.
Oil declined nearly 15 percent in July on concern about a glut of crude and finished products that would delay a long- awaited rebalancing of the market.
“It’s not surprising to see Saudi output at record”, said Anas al-Hajji, an independent analyst and former chief economist at NGP Energy Capital Management LLC in Houston.
Speaking about the possibility of Opec freezing output, Mihir said: “Oil prices were boosted this morning by reports of restrained output from Opec, moving up 0.5 per cent from the last close”.
OPEC will hold informal talks at a conference in Algiers next month, as members constantly discuss ways to stabilize the market, Mohammed Al Sada, Qatar’s energy minister and holder of OPEC’s rotating presidency, said August 8. Saudi Arabia’s previous production high was 10.56 million (bpd) in June 2015. Gasoline stockpiles fell 2.8 million barrels. Saudi Arabia has long said it would consider a freeze if Iran were to participate. The organization has 14 members after adding Gabon in June.
Crude-oil prices dropped more in early Asia trade Thursday, weighed down by the continuous growth in USA crude stocks and the record-high output by Saudi Arabia.
“Crude oil stocks rose 1.06 million barrels to 523.6 million barrels”.
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Previously, the Paris-based International Energy Agency (IEA) slightly revised up its demand-growth forecast for 2016, also marginally increasing its 2017 forecast to a total of 97.4 million barrels per day. That could be achieved later this year, though analysts have said Iran could see difficulties in maintaining that level of output, given the lack of investment over the past few years.
