As reported in earlier post, World Oil Production is increasing – with Non-OPEC production at 50.921 m bpd (See post – Non-OPEC production soars) having the biggest impact (North Sea, Canada, Russia).  This is mainly to meet increasing China consumption driven by auto sales (Chinese purchased 13.6 m cars & light trucks last year – compared to 10.4 m for USA).

Non-Opec production is probably reaching its peak according to the The Oil Drum. The question remain whether production can keep up with demand. With OPEC quotas being adhered to by Saudi, this may only mean higher gasoline and Crude oil prices.  Goldman Sachs 6 month price target is $ 94.

Saudi local consumption of Crude Oil continue to climb with current estimate of 2.8 m bpd in 2010 from 2.6 m bpd in 2009.  Saudi total production stood at 12.5 m bpd. Heavy subsidies of feedstock to Industrial users and gasoline pump price and lack of sufficient natural gas will pose potential constraints on future exports from the world’s central bank of oil.

Oman is increasing its output to 900,000 bpd from 810,000 bpd for full year 2009.

ENOC is to start working on upgrading Jabal Ali refinery to convert naphtha to reformate (gasoline compnent) with capacity of 40,000 bpd.  On retail, ENOC is seeking to end petrol price limits in UAE. Currently, retail price is fixed at Dhs 1.37 per liter or Dhs 6.25 per gallon.

Saudi to maintain Feb Oil volumes to Asia in line with OPEC production quota.