According to Michele Della Vigna in an interview, where they were talking about Oil Price Bloomberg daily conversations. 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.
What do you think in real facts, that affect the trade spat on Oil Demand?
We are eating very quickly the Oil capacity produced by the Opec, between one or two millions barrels per day. And the more the crisis on some of the more critical 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 going to fall out soon, Venezuela is having a problem on getting anything out of the ground.
Is the supply size going to 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 their 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 up to one million to one and a half million barrels per day, depending on how countries like China will react. Libya is unpredictable; US supply always restrained by infrastructure. When we take all of that together, I believe there is a substantial risk to supply.
And this is still a period where a lot of major projects come on screen. The question is: What will happen in 2020 or 2021 when in my analysis, the pace of new projects starts to slow down and shield itself will begin to slow down on the back of more decline.
Something vital, 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 see something common on the Oil production quite high, but if it continues like this, such a thing might represent a real high price scenario shortly.
What should Oil producers consider doing right now in term of spending, remain prepared for that scenario?
What they can do will be to continue to use their influential positions to negotiate to improve tax terms with governments. Improving conditions of the oil services and to keep to simplify standardized projects and on the side of the government. Only sanctioned when they can’t reach their oil production quotes agreed.
Should any of these actors of the oil production industry be investing more in projects to improve oil production?
When it comes about Oil Prices, Bloomberg gives 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 learned to simplify and break down their projects, in ways that make them profitable with much lower budgets.
It is interesting 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 another word, one dollar invested today is the equivalent to 3 dollars spent in two thousand sixteen.
Oil Price Bloomberg forecast is hackish with no doubt.
Only this week, Oil Price Bloomberg news journalist was 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 precarious moment in the Oil Price Bloomberg guests are saying.