© Reuters. The logo of the Organization of the Petroleum Exporting Countries (OPEC) outside the organization’s headquarters in a photo from Reuters archive
By Stephanie Kelly and Alex Lawler
NEW YORK, Oct 26 (Reuters) – Data and analysts indicated that US seaborne imports from members of the OPEC+ alliance, including Saudi Arabia, declined steadily last year, further reducing supplies to the US market while supporting other markets, including Europe.
Over time, the level of US crude oil imports from the Organization of the Petroleum Exporting Countries (OPEC) and other exporters and US shipments to Europe are likely to have a more direct impact on global oil prices as a result of this year’s change in benchmark Brent crude.
The decline in US imports coincides with OPEC, Russia and other allies reducing supplies, as well as an additional voluntary reduction from Russia totaling 1.3 million barrels per day until the end of 2023.
The decision by Saudi Arabia and Russia to extend the voluntary reduction led to oil prices rising to more than $90 a barrel in late September. The reduction also led to a reduction in crude supplies, especially high-sulfur crude, before the winter season, which requires heating fuel.
Data from Kpler expected that total US seaborne imports of crude would reach 2.47 million barrels per day on average in October, down from 2.92 million barrels per day in September, with shipments from OPEC+ producers, including Nigeria, Algeria and Saudi Arabia, declining. .
Kpler figures showed that in this context, Saudi crude exports to the United States are expected to decline to 241,000 barrels per day in October, down from 286,000 in September and from 410,000 in October 2022.
The decrease is partly related to the change of seasons. Peak demand for gasoline in the United States falls at the end of the summer as refineries slow down for maintenance. But analysts said there were other reasons for this decline.
“Reducing supplies to the United States affects sentiment, puts pressure on inventories and ultimately affects prices,” said Matt Smith, chief oil analyst for the Americas at Kpler, referring to Saudi Arabia.
Smith added that Saudi Arabia is instead exporting more quantities of crude to China. Kpler data showed that Saudi crude exports to China rose to about 1.6 million barrels per day in September from 1.2 million in August and 1.37 million in July.
Vortexa’s Rohit Rathod said West Coast refineries, including Chevron’s (NYSE:) refinery in Richmond, California, and Los Angeles-area refineries received smaller amounts of Saudi crude in September.
As crude oil imports declined, the United States exported less oil to Europe.
Kpler data showed that US crude exports to Europe fell to 1.86 million barrels per day in September and 1.84 million in August, down from 2.01 million in July.
Traders said that the decline in exports to Europe affected futures prices for standard Brent crude.
(Prepared by Muhammad Harfouche for the Arabic Bulletin – Edited by Ali Khafaji)
2023-10-26 19:25:00
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