Saudis, Other Gulf Oil Producers May Cut US Exports As Supply Swells

Paterniano Del Favero
Marzo 25, 2017

According to data released by the US Energy Information Administration (EIA), stockpiles swelled by a further 4.95 million barrels to 533.1 million barrels. The Official for Saudi's energy ministry also said that "Exports may fluctuate week on week, but on average in March exports will be down", the country is expected to keep the exporting at bay making March exports the staple for the following months.

Oil prices, as traders waited to hear the outcome of a meeting Sunday of major crude producers to discuss compliance with the output cut deal that was implemented at the start of the year.

Analysts at Commerzbank said the Saudi comments helped oil prices stabilize on Friday But they also pointed to data from consultancy firm Oil Movements, which for the first time showed a visible decline in OPEC shipments in tankers at sea.

Oil prices have lifted slightly as Saudi Arabia plans to cut crude exports to the USA next month.

Crude prices have continued to fall and are on track to end the week close to levels not seen since the OPEC deal on Nov 30. It settled on $47.70 on Thursday.

The Saudi Arabia is expected to cut its exports to the United States entering March; the decrease of barrels per day will reach the 300,000 cap.

The official also mentioned that the lower Saudi exports, the higher the chance that USA stockpiling is affected.

The country cut its crude output by 45,000 barrels per day in January to 965,000 bpd from the previous month, to comply with a deal struck late past year by the Organization of the Petroleum Exporting Countries and non-OPEC producers to support oil prices.

Gasoline stocks are falling, but remain seasonally high. Imports from Iraq and Kuwait dropped sharply for the week to March 10 but then rebounded in the most recent week of data.

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