Can Saudi Arabia pump a lot more oil?

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The following content originates from external partners. LONDON (Reuters) – The leader of Saudi Arabia assured US President Donald Trump that the kingdom could boost oil production if needed and that the country has 2 million barrels a year. That day, unused capacity could be deployed to help cool oil prices to offset the drop in production in Venezuela and Iran.

In a tweet published Saturday, Trump said that Saudi Arabia Anyway, the kingdom, the largest member of OPEC, can barely increase the production of 1 million bpd to 11 Millions of BPD and even that would be difficult, according to industry analysts predicting a further rise in oil prices due to a lack of new supplies.

The race of the OPEC to balance the l & # 39; supply and demand for crude oil – https://reut.rs/2tJQ2sl

Here are the comments of some of the leading analysts of OPEC: [19659005] PIERRE ANDURAND, hedge fund manager

" I guess the Saudis want to give Trump the confidence to become very hardcore about Iran.Exports to zero or an attack.It will be interesting to see what the Saudis can really do and for how long. that the Iranian regime change is the number one priority for the Saudis. "

AMRITA SEN, Chief Oil Analyst at Energy Aspects

" We will be in unknown territory, while Saudi Arabia has capacity in theory, it takes time and money to put those barrels online, maybe up to a year. "

GARY ROSS, Head of Global Oil Analysis at S & P Global

"The Saudis do not have 2 million bpd of capacity unused, which would imply a production of 12 million bpd. They can probably produce up to 11 million and even that will make their system work at stress levels, "said Ross.

He added that with a potential drop in production of 1.5 million bpj in Iran and new failures in Venezuela, OLE HANSEN, head of raw materials research at Saxo Bank

"We see another strong signal from two of the three largest oil powers in the world. large producers to cap the price upward in oil.With Russia agree to what we see the political interference in setting oil prices on the rise.About Saudi Arabia accepting such a demand increases the risk that OPEC plays its role with Saudi Arabia, Russia and the United States. "

" I do not believe that Saudi Arabia can increase its production at 12 million bpd "This also increases tensions in the Middle East and with Iran controlling the Strait of Ormuz, there is a risk that it will degenerate to such a point that 2 million bpd would not be enough. . "

" In the short term, however, one can expect a busy night on Sunday, with traders and funds trapped. Notably in the WTI, where we witnessed a collapse of crude oil last week when the 25% jump and the long / short ratio reached a 7-year high. "

GIOVANNI STAUNOVO, Materials Analyst at UBS [19659003]" While the tweet of US President Trump is very clear about the amount of oil that he expects to see from Saudi Arabia, the statement of the Saudi news agency was more vague – no reference to volume increase. "

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"An increase in Saudi output of 2 million bpd would shift oil production from the Kingdom to a territory unexplored and would completely destroy the kingdom's unused capacity. "

are likely to become more volatile in the coming months, caught between two narratives: excessive concerns and growing concerns over reserve capacity and the oil market." [19659003] (Report of Amanda Cooper, Rania el Gamal, Ahmad Ghaddar, Dmitry Zhdannikov, edited by Louise Heavens)