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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.
Oil prices were mixed on Thursday as the market struggled to digest signs of strong gasoline demand in the US, the world’s biggest consumer of the fuel, with a statement from oil producers that they
Oil traded below $68 (Dh249) as investors weighed the prospect of shrinking US inventories against more supply from Saudi Arabia and America’s emergency hoard.
Futures in New York declined
The price of Kuwaiti oil went up 74 cents Monday to $71.79 per barrel (pb), after being at $71.05 pb Friday, said Kuwait Petroleum Corporation (KPC) on Tuesday. On the global scale, the oil price fal
Oil retreated below $70 (Dh257) a barrel as Saudi Arabia was said to offer extra crude to some customers, while the US was said to consider tapping emergency supplies to offset losses elsewhere.
To bring the oil prices down to an acceptable “White House” level, which is less than $80 per barrel, the USA administration must ensure all oil-producing countries including OPEC member states conti