Oil prices rose yesterday on the back of news that Saudi Arabia will trim exports for November. Brent crude rose 1.47% to $56.61/bbl, while WTI soared by 2.7% to $50.92/bbl as Asian demand for US crude grades may continue rising, on the back of lower Middle-Eastern deliveries.
Saudi Arabia has cut crude oil allocations for November by 560,000 bpd. November demand for Saudi crude for had shaped at 7.71 million bpd, however following the reduced allocations the Kingdom is now expected to export 7.15 million bpd. Thomson Reuters Oil Research have assessed September seaborne crude oil exports from the country at 6.7 million bpd, a 180,000 bpd drop from August levels. Saudi Arabia also sends crude oil to Bahrain via pipeline, although volumes remain largely unknown. There are indications that pipeline volumes range between 200,000-250,000 bpd, however, it is not clear if these quantities are included in the monthly exports figures.
Thomson Reuters Oil Research have estimated that US crude stocks dropped by 2.16 million bbl last week, the third crude inventory decline in a row. Supply in the US increased by 660,000 bpd on the back of rising imports, which rose to 7.9 million bpd, while production is largely expected to have stayed flat.
Refinery input was assessed at 16.38 million bpd, 353,000 bpd up w-o-w, while exports were seen at 1.36 million bpd, a weekly drop of 622,400 bpd
The Oil Research Team
Supply Chain & Commodities Research