Two notes today from twitter:
- shale: output needs to rise to offset possible year-end supply squeeze, Vitol: link here.
- if oil supply comes up short, shale comes to the rescue; not OPEC+: link here.
Goldman Sachs: Brent oil could rise to $65/bbl by the end of the summer.
- Obama: we can't just drill our way to lower prices:
- Biden: slightly higher gasoline prices: the price we pay to save the earth;
First, the S&P Global Platts story:
- OPEC+ slows down output rises more than expected;
- 2021 demand increases to hover around 6 million to 6.5 million b/d;
- oil prices rising due to potential supply squeeze;
Remember the graphic at this post? Rigs matter:
A reader noted that Saudi Arabia generally contracts rigs for two to three years -- which suggests, it's not easy to pivot in the Mideast -- then add the cash crunch Saudi is facing -- and then add the jump in the oil price Saudi now sees -- on the other hand, there are thousands of wells drilled but waiting to be completed (DUCs) and several thousand more that are off-line for operational reasons in the Permian and the Bakken. This will be fascinating to watch.
Now, the other link. Considering the source, this is a pretty big deal: