This is tremendous news that the market overlooked in my view.
Now the market finally knows: Ghawar in Saudi Arabia, the world’s largest conventional oil field, can produce a lot less than almost anyone believed.
When Saudi Aramco on Monday published its first ever profit figures since its nationalization nearly 40 years ago, it also lifted the veil of secrecy around its mega oil fields. The company’s bond prospectus revealed that Ghawar is able to pump a maximum of 3.8 million barrels a day — well below the more than 5 million that had become conventional wisdom in the market.
I talk about this issue along with news that China re-affirms it’s intention to build 6-8 nuclear reactors per year every year for the next ten years. That news is a big boost for future uranium demand and pricing. This and much more in this weeks Weekly Market Review.