Chinese domestic oil production numbers continue to fall

It might just be an up week for crude oil but in modest volume and on, to be frank, fairly skinny reasons. After all, who on earth is still believing the old line, especially when coming from the KSA, that ‘we will have a special Opec meeting to discuss current low oil prices’? It goes with ‘the cheque’s in the post’ and other such lines that don’t carry any weight. The market grabbed at it though and conveniently forgot the Saudi July production number of 10.67m b/d which is clearly just a net export figure plus domestic demand, higher than usual this year due to a very hot summer.

Elsewhere the Chinese domestic oil production numbers continue to fall, July was down 8.1% y/y at 3.94m b/d due to uneconomic fields at these prices and exhaustion. Elsewhere the IEA valiantly tried to remain fairly bullish by expecting a ‘healthy’ stock draw in the third quarter but also sees a fall in demand again next year.