OPEC’s combined water-borne shipments reached 24 million bpd in March.
OPEC’s combined water-borne shipments reached 24 million bpd in March.

Saudis Appear to Be Cutting Exports

Saudis Appear to Be Cutting Exports

A sharp drop in the number of oil barrels Saudi Arabia loaded onto tankers in April appears to deliver what the market has been awaiting: a big decline not just in crude output, but exports.
Data from transportation tracking firm ClipperData indicate that the number of barrels the kingdom put on tankers for shipment around the world fell by more than 670,000 per day in April. That would mark the sharpest decline this year and a reversal of March's increase, CNBC reported.
Members of the OPEC have achieved historically high compliance with a deal to cut their combined production by 1.2 million barrels a day. But the oil cartel has not really taken that crude off the market because exports remain high, said Matt Smith, director of commodity research at ClipperData.
OPEC's combined water-borne shipments of nearly 24 million barrels a day in March were up slightly from October levels, before OPEC hammered out the deal to cut output. They jumped to about 24.3 million barrels a day in January, the month the deal was implemented. According to Smith, consistently high exports have prevented the output cuts from achieving their goal: shrinking huge stockpiles of crude oil around the world.
Crude in storage at US facilities has fallen in recent weeks, but stockpiles remain near all-time highs. In its latest monthly report, the International Energy Agency estimated inventories in developed countries were 336 million barrels a day above the five-year average in February. Those elevated inventory levels have weighed on sentiment in recent weeks, contributing to a sell-off in the oil market that shaved about $8 off the price of benchmark US crude in the last three weeks.
Iranian export loadings appear to be dropping in April, as well, but this appears to be a Saudi story for the moment. Saudi Arabia's cut to outward shipments gives them leverage heading into this month's OPEC meeting, according to Smith.
"It is all about this meeting on May 25, and so they'll be going into that meeting knowing that they have cut exports by far more than they said they would. They will go in there and bang the table and try to get everyone else in line," he said.


Short URL : https://goo.gl/X1Qhkz
  1. https://goo.gl/JwE0UE
  • https://goo.gl/0nif6X
  • https://goo.gl/PJc5AL
  • https://goo.gl/2uEoUh
  • https://goo.gl/PWw5Qg

You can also read ...

Norway Intends to Build First Offshore Floating Wind Farms
Norway’s Petroleum and Energy Minister Terje Soviknes will...
Venezuela Oil Production May Soon Sink to 1m bpd
Venezuela’s plummeting oil production is nearing the...
GAP envisages the construction of 22 dams and 19 power plants.
Turkey is taking advantage of its abundant supply of ...
OPEC+ to Discuss Q3 Output Surge
The planned increase of crude production by OPEC+ nations of 1...
Egypt Hikes Fuel Prices by 50 Percent
Egypt has raised gasoline prices by up to 50%, its oil...
US-Saudi  Oil Increase  Plan a Ploy Against OPEC
The US political pressure on Saudi Arabia to boost oil output...
Oil Ministry to Modify Contracts With Domestic Parts Producers
The Oil Ministry plans to modify the contracts it had earlier...

Add new comment

Read our comment policy before posting your viewpoints