Wednesday October 14, 2009

Russia overtakes Saudi Arabia, tops global oil production

peakoil.com -> officialwire.com :

Russia is pumping more oil than ever before, counteracting OPEC production cut efforts to influence the crude price. Russia in September produced 10 million barrels of oil per day [mbpd], a new record for the country that recently surpassed Saudi Arabia as the world's biggest oil producer. The increase is due mainly to the opening of the Vankor field in the Arctic. The Rosneft-operated field is due to reach its peak production of 510 kbpd in 2014; much of its oil will be delivered to China.

OPEC, which accounts for nearly 40% of global crude supply, pumped 26.25 mbpd in Aug 2009, 1.4 mbpd over the production target set a year ago. This comes a few days after British newspaper The Independent reported on a secret plan by China, Russia, France, Brazil and the Gulf states to replace the USD as the pricing currency for oil by a currency basket, which would include the euro, yen, yuan and a future joint currency in the Gulf region. Several OPEC member states and Russia have denied the report.

- While this isn't the first time that Russia has overtaken Saudi Arabia in crude oil production figures, and there may be some who are skeptical over the sustainability of their lead, it would be useful to note where Russia's new-found oil reserves are now coming from, the holy grail of new oil discoveries : the Arctic. Compared to Saudi's aged and declining Ghawar field, the Russians now have the upper hand in the energy production game, with their resources in key areas from crude oil to natural gas to uranium. As the peakoiler community has predicted, and I have blogged about, since circa 2006 - move along, Saudi Arabia : Russia is well on its way to becoming a true energy superpower.

See also :

1. The 4 biggest oil fields in the world are in decline
2. Russian energy model challenges OPEC
3. Saudi Arabia's oil a huge question
4. Russia overtakes Saudi Arabia as world's leading oil producer
5. The construction site called Saudi Arabia

(2009-10-14 08:29:56 SGT) [Energy] Permalink

USDX falls below 76 again, EUR/USD forex rate above 1.48 on further US dollar weakness

bloomberg.com :

The US dollar declined to the lowest level against the euro since before the bankruptcy of Lehman Brothers, unwinding gains posted earlier as investors sought safety amid the global credit crisis. The USD's drop helped push gold prices to a record high and oil prices above $74 a barrel for the first time since Aug 2009. USDX, the US Dollar Index, dropped to as low as 75.738. The dollar's decline versus the euro accelerated after breaching $1.4850. The dollar has lost 17% since Oct 2008. Gold prices rose to a record amidst a weakening dollar and inflation fears. Platinum, palladium and silver prices also climbed to 1-year highs.

- Whatever the Asian central banks did in their intervention, either : a. it needs a second round, or b. it can't be helped, as the USD continues its fall. This time, the USDX has gone further below the key 76 support level than earlier, which has lead to corresponding increases in crude oil prices and gold prices. The next support level for the USDX is 74, the next one after that is 72, and unless the US dollar stages another stunning comeback, beyond 72 it's freefall alley.

See also :

1. US Dollar Index (USDX) crashes below 80 after Fed rate cut to zero percent, ZIRP era begins
2. NYMEX crude oil prices soar above $72 on economic recovery, euro rally
3. COMEX gold prices hit new record high of $1061.40 per ounce in third straight session
4. Asian central banks intervene to prop up US dollar after USDX fall below 76

(2009-10-14 06:50:37 SGT) [Biz] Permalink

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