By: Greg Gill / September 26, 2018

opecCrude prices have been surging the last few weeks with the expected loss of Iranian supply beginning November 4th. With that, the U.S. has been ramping up pressure on OPEC to increase production in an attempt to lower oil prices.     

Over the weekend OPEC had a scheduled meeting to decide a supply strategy, the post meeting reports are that OPEC is content with the overall balance between supply and demand for now. The message delivered is there is enough spare capacity among OPEC members and if need be they are capable of meeting excess demand by customers. OPEC is concerned they don’t want to ramp up production and create an oversupplied market that will have a negative impact on their oil revenues. 

However, there are concerns abound that have some crude bull predicting $100/bbl on Brent with the potential supply gaps that might unfold within the next 3-6 months.

In addition to upcoming Iranian sanctions, lower production from Venezuela along with violence in Nigeria and Libya have added to the vulnerability of supply in global markets.  Further, the International Energy Agency predicts strong oil demand growth of 1.4 million barrels per day (bpd) this year and 1.5 million bpd in 2019.  

A larger concern is that Saudi Arabia’s spare capacity is not proven.  Saudi Arabia has indicated that its spare capacity sits near 1.5 mb/d however that is only an estimate that has not been tested. Current production levels by the Saudi’s are at 10.6 mb/d and producing anything north of that has never been done on a long-term basis.   

Thus far, the outcome of the weekend OPEC meetings is oil has reached 4 year high levels this week.    





Categories: crude oil, OPEC, Iran, Venezuela, Oil Prices, oil and gas

Greg Gill

Written by

Greg Gill

I’m passionate about fully understanding my customers’ fuel operations and the fuel markets in which they operate. I want them to view me as their fuel expert. To develop strong, trusting partnerships with customers, I have to provide them with meaningful and timely information to ease the challenges of making smart fuel decisions, allowing them to focus on their core business.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.


Contact Us