Saudi Arabia Production Coming Down After Seasonal Push -- September 8, 2016

Before we get to my notes, take a look at Mark Perry's "Thursday afternoon links." Some interesting stuff. I particularly like the map showing the eighteen (18) urban areas that together account for 50% of US GDP. Texas has two urban areas: Houston, and DFW. The map will be updated later, but if I read it correctly, the two areas in California are in the Bay Area (Silicon Valley) and in Orange County (Disneyland) and south to San Diego County. Los Angeles County does not figure in the 50%. The Minneapolis/St Paul area does. Take a look. Tell me if I'm wrong. If correct, that speaks volumes about LA County, considering: LAX, Port of Los Angeles, and Port of Long Beach, just for starters.

Other notable urban areas that contribute to the "50%": Denver; Phoenix-Tucson; Seattle and down to Portland, I believe; and, Atlanta, I believe.

But, broad brush, California looks fairly bleak. Considering.

By the way, this is the kind of demographic / graphics The Atlantic used to have in abundance until it changed it format, and its editorial policies. 

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 An Energetic Non-Story

This, of course, is a non-story, but apparently energy reporters are looking for anything on a slow news day.

Saudi Arabia told OPEC that its oil production dropped by 40,000 barrels a day in August to 10.63 million barrels as the group debates a deal to curb output to shore up prices.

The figures were submitted to the Organization of Petroleum Exporting Countries, according a person with knowledge of the data.

The country’s output declined from an all-time high of 10.67 million barrels a day in July.

OPEC and Russia are putting cooperation back on the table, after two years of a Saudi-led strategy by the producer group to pump flat out to protect market share against the surge in U.S. shale oil. Their last attempt to do this -- a proposal to freeze output in April -- collapsed after Saudi Arabia refused to proceed without all OPEC states, including regional rival Iran, participating.

And so it goes.

Meanwhile, US gasoline demand as reported by the EIA:

Note how the "delta" between this year and last year has widened this past week.