This is the first in a monthly series of posts chronicling the action in the global oil market in 12 key charts.
- The oil price crash of 2014 / 15 is following the same pace of the 2008 crash. The 2008 crash was demand driven and began 2 months ahead of the broader market crash.
- The US oil rig count peaked in October 2014, is down 127 rigs from peak and is falling fast.
- Production in OPEC, Russia and FSU, China and SE Asia and in the North Sea are all stable to falling slowly. The bogey in the pack is the USA where a production rise of 4 Mbpd in 4 years has upset the global supply dynamic.
- It is unreasonable for the OECD IEA to expect Saudi Arabia to cut production of cheap oil in order to create market capacity for expensive US oil [1].
- There are likely both over supply and weak demand factors at play, weighted towards the latter.
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