• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 4 hours The United States produced more crude oil than any nation, at any time.
  • 1 day China deletes leaked stats showing plunging birth rate for 2023
  • 7 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Bad news for e-cars keeps coming
Say Goodbye to Utility Stock Dividends

Say Goodbye to Utility Stock Dividends

The U.S. electric utility sector…

Saudi Arabia Could Slash Oil Supply To The U.S.

Saudi Arabia could be looking to slash crude oil shipments to the United States from next month to effect a tightening of the world’s most transparent oil market.

As the Kingdom prepares to cut unilaterally 1 million barrels per day (bpd) from its crude oil production in July, its crude shipments to the west could be much more affected than exports to its primary market, Asia, which lacks transparent oil inventory reporting like the U.S. does, Bloomberg Opinion columnist Javier Blas argues.

On several occasions in recent years, Saudi Arabia has significantly lowered crude shipments to the United States in attempts to tighten the U.S. market, which reports oil and products data on a weekly basis, unlike China and India, which rarely – if at all – report commercial or strategic oil stockpiles.

Early this month, the OPEC+ producers decided to keep the current cuts until the end of 2024, but OPEC’s top producer, Saudi Arabia, said it would voluntarily reduce its production by 1 million bpd in July, to around 9 million bpd. The cut could be extended beyond July, Saudi Energy Minister Prince Abdulaziz bin Salman said.  

The production level in July would be Saudi Arabia’s lowest since 2011, excluding the initial cuts after the Covid outbreak in 2020 and the lowered production after the attack on Aramco’s facilities in September 2019.

Even after the production cut Saudi Arabia announced for July 2023, Aramco, the world’s largest crude oil exporter, reportedly assured at least five North Asian refiners they would get the full crude volumes they had asked for in July.

Prioritizing supply to its prized Asian markets, Aramco could lower shipments to the U.S., to force a tightening of the market that would be evident in inventory reports. Moreover, Aramco controls the largest refinery by capacity in the U.S., Motiva, and could influence supply to the 630,000-bpd facility in Port Arthur, too, Bloomberg’s Blas notes.

By Charles Kennedy for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Al Goobi on July 06 2023 said:
    All US A+ Shale wells have peaked. So one can argue that US shale has peaked.
  • Mamdouh Salameh on June 26 2023 said:
    Saudi crude oil exports to the United States averaging 414,000 barrels a day (b/d) in the first quarter of 2023 are too small to effect a tightening of the US market.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News