Crude Oil Output: US & Canada vs. Saudi Arabia (Excerpt)

The fracking revolution is boosting oil production not only in the US, but also in Canada. Data compiled by Oil Market Intelligence show Canadian crude oil output jumped 0.5mbd over the past seven months through January (and 1.0mbd over the past 20 months) to a record 3.5mbd. In other words, the US and Canada combined pumped out a record 10.4mbd during the first month of the year.

Together, their actual output exceeds the maximum sustainable production of Saudi Arabia, widely estimate to be 10mbd. So why have oil prices been rising since the start of the year rather than plummeting? To prop up the price, the Saudis have been forced to lower their output by 1.0mbd over the past seven months to 8.8mbd during January to make room for all the crude pouring out of North America.

Today's Morning Briefing: Breakout or Breakdown? (1) Riding the bull isn’t easy. (2) Silvio the spoiler? (3) Janet’s cheerleading didn’t charge up the bulls. (4) Seeking a catalyst for new highs. (5) Gushing about oil output in US and Canada. (6) Saudis are still the swingers. (7) World oil demand confirming better global economic growth. (8) Oil still has a geopolitical risk premium. (9) China's oil demand suggests faster economic growth. (More for subscribers.)