What do you think in real facts, that really affect the trade spat on Oil Demand?
According to Michele Della Vigna in an interview, where the were talking about Oil Price Bloomberg daily interviews. Michele said that he thinks all comes to GDP activity and that at the end of the day if GDP reminds as strong as it is right now, all demands will continue to be strong.
We are eating very quickly the Oil capacity produced by the Opec, between one or two millions barrels per day. And the more the crysis on some of the more important oil producers we will have a very volatile Oil trading market, said the Oil Price Bloomberg expert.
A Very Tight Oil Market!
We saw Saudi pull back on production a little bit, we know that Iran is gonna fall out soon, Venezuela is having problem on getting anything out of the ground.
Is the supply size really gonna shrink? Oil Price Bloomberg news, almost every day helps us understand better all this matters about, particularly this Oil Production worldwide situation.
Can the President trump tweet the Saudis into keeping up thier Oil production?
There is no doubt we are going into a period of a slow down Oil production. Venezuela continues to decline four hundred to six hundred barrels per day, the heat on Iran can be upto one millions to one and a half millions barrels per day, depending on how countries like China will react. Libya is unpredictable, US supply is restrained by infrastructure. when we take all of that together, I believe there is a substantial risk to supply.
And this is actual still a period where a lot of major projects come on screen. The question is: What will happen in 2020 or in 2021, when in my analysis, the pace of new projects starts to slow down, and shield itself will start to slow down on the back of more decline.
If is important that we pay attention to crude production the last few years, Oil price Bloomberg experts agreed that is not common on seeing the Oil production this low:
Oil Price Quite High
We are used to see Oil production quite high, but if it continues like this, that might represent a real high price escenario in the near future.
What should Oil producers be doing right now in term of spending, in order to be prepared for that escenario?
What they can do is to continue to use their strong positions to negotiate improve tax terms with governments, improve terms of the oil services and to continue to simplifies standardised projects and on the side of the government, only be sanctioned when they can’t reach their oil production quotes agreed.
Should any of these actors of the oil production industry be investing more on projects to improve oil production?
When it comes about Oil Prices Bloomberg give us a lot of information during along the day, and following the words of Michele, they should be doing more activities, which does not necessarily means investing more money.
Many Oil productions countries had learn to simplify and break down their projects, in ways that makes them profitable with mush slower budgets.
It is interesting the the cost of deporting and those mega projects had come down up to sixty to seventy percent, based on this article called 10 Major Oil & Gas Projects to Watch in 2018 from https://www.fircroft.com. In other word one dollar invested today is the equivalent to 3 dollars invested in two thousand sixteen.
Oil Price Bloomberg forecast is hackish with no doubt.
Only this week, Oil Price Bloomberg news journalist were mentioning about the surprise oil reduction on Saudi, the Attack to the President of Venezuela with a drone, war game going on in Iraq, all of that combined with the fact that there is a very unstable moment in the Oil Price bloomberg guests are saying.