High oil price volatility signals that the market has not yet decided the future direction of the oil price. Global production was marginally lower in January, but outside of the U.S., oil production remains robust with rises registered in most producing areas. Production in Iran has begun to rise with 80,000 bpd added in January. U.S. and global rig counts are in steep decline while drilling in the Middle East remains close to all-time highs. The following totals compare Jan 2016 with December 2015: – World total liquids down 230,000 bpd – U.S. down 170,000 bpd – North America down 180,000 bpd (includes U.S.) – OPEC up 270,000 bpd – Saudi Arabia up 70,000 bpd – Iran up 80,000 bpd – Russia + FSU up 10,000 bpd – Europe up 30,000 bpd (YOY) – Asia down 30,000 bpd This article first appeared on Energy Matters . Figure 1 WTI […]