GulfBase Live Support
West Texas Intermediate (WTI) and Brent oil prices have increased to $50 and $55, respectively, and bullish oil signs continue to accumulate. Joint Organisations Data Initiative (JODI) just announced that, in July, Saudi Arabia's oil production remained low and stable at 10.013 mbd, and its crude oil exports have dropped to 6.693 mbd. The following graph from Giovanni Staunovo, one of my favorite commodity analysts, shows the severity of the latest drop in Saudi Arabia's exports.
Assuming that exports from Saudi Arabia to the United States dropped in similar fashion and that it takes 45 days to 60 days for Saudi Arabia's exports to reflect in weekly oil inventory reports from the U.S. Energy Information Administration (EIA), it would be reasonable to expect continued large crude oil draws in the coming weeks.
A primary reason why Saudi Arabia's exports have dropped so much is that its crude oil stock level is also at multi-year lows.
According to JODI, Saudi Arabia crude oil stock levels fell to a 65 month low of 257 MBBL in June, and according to Mr. Staunovo, dropped further to 256 MBBL in July. Note that Saudi Arabia's crude oil stock level was approximately ~32 mb below its five-year average from 2012 through 2016.
Supply and demand in the global oil market are likely to balance out by the end of 2018 thanks to a pick-up in demand, notably from the transport sector, Organisation of the Petroleum Exporting Coun
The Gulf Today
Brent oil prices jumped by 1 per cent on Tuesday to their highest since mid-2015, after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market already tightening
Opec and non-Opec producers will agree on a strategy in June to exit the production cuts agreement currently in place to rebalance the oil markets, the UAE energy minister said on Monday.
Oil markets edged lower on Monday as ongoing output cuts led by OPEC were countered by rising U.S. drilling activity that points to a further increase in American production.
Brent crude f
Opec oil output in November dived to 32.35 million barrels per day, its lowest in six months led by declines in eight of the 14 member countries, an S&P Global Platts survey of Opec and oil industry
Times of Oman