EIA Monthly World Oil Production for September 2007 Just Released

The world’s oil fields had a pretty good month in September, according to the U.S. Dept. of Energy’s Energy Information Administration. A nearly 1 million barrel-per-day increase over August in crude and condensate production, still the trend remains: Average daily production world crude and condensate production by year:

2005 = 73,807,000
2006 = 73,539,000
2007 = 73,134,000

Since July 2007 U.S. inventories have declined by nearly 12%, and OECD inventories have declined somewhat more. Prices have risen 40% or so. I look forward to the supply data for the period 7/07 – 12/07 with great anticipation, and will recast it along with inventory and consumption data and price action. At the moment, something appears amiss in the data compiling, or the price inelasticity of oil is much worse than had been previously believed. In addition, it would take perhaps another 6 to 12 months to determine if any new “production” from OPEC was an actual increase in production or a drawdown in OPEC inventories. OPEC (Saudi Arabia) is none to helpful in this regard.

On another note, yesterday’s coordinated activity of world Central Banks is conclusive proof that a potential dollar crisis has the powers that be running for clean underwear.

Yours for a better world,

Mentatt at yahoo (d0t) com