Saudi’s say, 'enough is enough'

By Phil Flynn

http://www.futuresmag.com/2018/07/20/saudi%E2%80%99s-say-enough-enough

"Even though Saudi Oil Production increased by 750,000 barrels in June, July levels would remain unchanged. In fact, the Saudi said that their oil exports would fall by 100,000 barrels a day and even though the Saudis and Russia are increasing output, they project that global oil inventories will see substantial drawdowns in the second half of the year.

And that is what I see as well. As oil sold off after signsthat OPEC and Russia would raise output, the truth is that the increase is hardly going to be enough to stop oil stockpile declines later in the year. Even with U.S. record production, the combination of record oil demand, along with declining production from Venezuela and sanctions on Iran, we will be in a supply deficit when we see the end of the year demand increases kick in. Reuters is reporting that Japan's last imports of Iranian oil could be in October. Also, in a sign that global demand is strong, we saw that Asia oil buyers snapped up cargoes from Europe and Africa after Brent prices fall.  "