Oil prices go and stay above $80 per barrel for a while

IEA (International Energy Agency) and Saudi Arabia oil prices will go and stay above $80 per barrel as output from Venezuela and Iran drops.

Saudi Arabia lifted output by 70,000 barrels a day to 10.42 million last month. This is short of the 11 million barrels per day that they promised.

Venezuela could drop from 1.2 million to 1 million barrels a day.

Iranian production has already fallen to the lowest since July 2016, at 3.63 million barrels a day. Iran’s oil production was at 4.4 to 4.5 million barrels per day. Iran oil exports have dropped 35% since April. In the first half of August, Iran’s oil exports fell from 2.32 million bpd to 1.68 million bpd.

Russia, Saudi Arabia and other Gulf members of OPEC promised to bolster production by about 1 million barrels a day but only part of the production increase is happening.

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