Saudis Up Oil Price Outlook, See Budget Deficit Shrink

After suffering two record budgets shortfalls in 2015 and 2016 as a result of plunging oil prices, which nearly brought both Saudi Arabia’s economy and banking sector to a standstill, not to mention the billions in unpaid state worker wages – at least until generous foreign investors funded the Kingdom’s imminent cash needs with its first bond sale ever – today, Saudi Arabia released its budget outlook for the next year. And while the Saudis believe the country’s budget deficit will fall modestly next year, even with an increase in spending,…

Russian Oil: Cutting Against Projected Growth

Russia has pledged to OPEC and other Non-OPEC countries to cut its oil output by 300,000 bpd in the first six months of 2017 in a joint effort to reduce the global oil glut by almost 1.8 million barrels a day. However contradictory and ambiguous statements made recently by the Russian Ministry of Energy and Russian oil companies raise some doubts as to whether the Russians are really able to carve out a joint course of action. According to the announcement made by Russian Energy Minister Alexander Novak last week, the production cut will be implemented…

U.S. Natural Gas Needs Mexico

The United States became a net exporter of natural gas in November 2016, a development driven by falling imports (due to high domestic natural gas production) and rapidly increasing natural gas exports. The two main drivers of U.S. natural gas exports are the Mexican natural gas pipeline and the LNG export terminal at Sabine Pass, operated by Cheniere Energy through Cheniere Energy Partners. If conditions remain the same, and foreign demand for natural gas continues to increase, the U.S. has the potential to become a major energy exporter. That…

Oil Rich Iraqi Oil Province Kirkuk Ready To Participate In OPEC Cuts

Kirkuk, one of Iraq’s richest oil provinces and under Kurdish control since 2014 has now said it’s ready to curb oil production if Iraq requires it to do so. Bloomberg quoted Ahmed Al-Askari, the head of Kirkuk’s oil energy and industry committee as saying that his province is prepared to reduce output if the decrease is ‘’proportional’’ with the country’s other regions. Earlier this week, Oilprice reported that Iraq might delay the output cut, as it plans to cut production, but not necessarily meet…