Record Saudi oil output fills supply gap
"These numbers reflect a profound but easily overlooked trend in the global oil market. In spite of the shale oil revolution in the US, the world has become, if anything, more dependent on a handful of Gulf producers to fill supply shortfalls elsewhere."Whatever is happening in the US, the Gulf states remain critical to the global oil trade," says Jan Stuart, head of energy commodities research at Credit Suisse. "The fact they are producing so much shows that the global oil balance is far more stretched than consensus would have you believe."The trigger for the jump in Gulf production has been huge disruption to supplies from Libya, where striking workers and militias have reduced exports from about 1m b/d to merely a trickle. Saudi Arabia has responded by pushing output to 10.2m barrels a day in August, according to the International Energy Agency, the most in IEA records. The country is now reaping more than $1bn a day in export revenues."
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