Saudi Arabia Oil supplies
After a short break Saudi Arabia continued to increase oil exports from the country.
According to JODI, the Middle East Kingdom supplied to the world market more than 7 million barrels per day in November, marking the growth of export for two consequent months.
Recall that in September last year, oil exports from Saudi Arabia fell to the lowest level since the spring of 2011, after it began to gradually recover. This was done to balance the oil market, pressing stockpiles below the five-year average. According to calculations by Citigroup, last year the size of crude oil stockpiles fell below the average level of the last five years, but OPEC official figures show they are still higher, that is, it is too early to weaken the grip.
It is increasingly difficult for OPEC pact members to resist the temptation to break commitment when prices are rising. However, the increase in exports from Saudi Arabia is most likely due to the seasonal factor and the high demand for energy.
Traditionally, in the first months of autumn, refineries in the Kingdom undergo maintenance work, which leads to a decline in exports. Given that in the fourth quarter of 2017 there was an undersupply of crude oil by 0.9 million barrels per day, the growth in supplies from the kingdom did not significantly affect the global supply.
Further reading: Oil market review: Saudi Arabia exports and technical picture - Broker Arena