Saudi Arabia has traditionally accounted for most of the crude imports by Asia, the world's biggest oil-consuming region. But recently OPEC's top producer has lost ground in a number of major markets including Russia and China, and faces a further threat from Iran, which is ramping up exports after the removal of Western sanctions.
This summer the U.S. oil price has whipsawed from more than $50 a barrel in June to below $40 earlier this month. In the past two weeks it has risen more than 20%, to a recent $48.22 a barrel.
During the period we continued to focus on improving our efficiency and pro-actively restructured some of our central functions and have reduced costs in those areas where business activity reduced. As a result margins were higher than both Q1, 2016 and Q2, 2015.
U.S. Rig Count is up 10 rigs from last week to 491, with oil rigs up 10 to 406, gas rigs unchanged at 83, and miscellaneous rigs unchanged at 2. Canadian Rig Count is down 5 rigs from last week to 121, with oil rigs unchanged at 65, gas rigs down 4 to 56, and miscellaneous rigs down 1 to 0.
Nigeria's crude oil production disruptions are concentrated in the Niger Delta region, an oil-rich area bordering the Gulf of Guinea that is the mainstay of the country's crude oil production. Since the beginning of 2016, the Niger Delta Avengers (NDA) have conducted many attacks on oil and natural gas infrastructure throughout the region. Although not the only militant group conducting attacks in the region, the NDA is currently the most active.
Oil Production was 1 728 000 barrels, and is the largest monthly oil production volume in five years (March 2011). Total gas sales were 9.1 billion Sm3 (GSm3), which is an increase of 0.9 GSM3 from the previous month.
The Russian government has issued the license for the Central Oil and Gas Company – a joint venture between Lukoil (25%), Gazprom (25%) and Kazakhstan’s KazMunaiGaz (50% ) – to develop the Central field.
Natural gas production worldwide is projected to increase from 342 billion cubic feet per day (Bcf/d) in 2015 to 554 Bcf/d by 2040.
U.S. oil production down 85 tbd, gas production down 373 mcfd.
"With regard to the cooperation with Saudi Arabia, the dialogue between our two countries is developing in a tangible way, whether in the framework of a multi-party structure or on a bilateral level," Novak was quoted as saying.