Saudi Arabia’s oil sector threatened by North American supply

Saudi Arabia’s oil sector threatened by North American supply:

"Saudi Arabia has been publicly skeptical of North America’s energy surge, but there are now clear signs that its economy is directly hit by developments in Fort McMurray, Eagle Ford and the Bakken.

The massive oil sector of the Middle East’s largest economy shrank 6.3% in the first quarter of the year, its lowest reading since quarterly data was made available in 2010. Brent crude prices contracted 7% during the period while production was down nearly 8%.

“North American and Iraqi supply additions represent the main risk to the Saudi oil sector,” wrote James Reeve and Andrew Gilmour, senior economists at Riyadh-based Samba Banking Group in a report."

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