In November, the supply of oil from Saudi Arabia to the US fell to a multi-year low, flows to China also decreased.
Total observed Saudi oil supplies fell to about 7.1 million barrels per day in November, the lowest since June, tracking data showed tankers compiled by Bloomberg. This compares with a revised figure of 7.5 million barrels per day in October.
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U.S. exports fell to 83,000 barrels a day – the lowest level since Bloomberg began tracking the data in early 2017 – from 387,000 in October. The November figure could rise as ships carrying about 18 million barrels of Saudi oil loaded last month have yet to announce their final destinations.
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Saudi officials did not respond to requests for comment.
We will remind, Saudi Arabia, the largest oil producer in the Organization of the Petroleum Exporting Countries, reduced exports as part of the implementation of the OPEC+ agreement, designed to balance the world oil markets.
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The alliance, which includes Russia and several other non-OPEC countries, will hold a virtual meeting on December 4 to determine the next steps. It is increasingly expected to keep production at the previous level.
OPEC+ previously agreed to cut production last month, prompting a sharp rebuke from US President Joe Biden, who has been pushing for months to lower oil prices as countries around the world grapple with historic inflation.
Saudi Arabia has said its relationship with the US is strong, despite disagreements over oil production.
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It is rare, though not uncommon, for Saudi oil flows to the US to slow. In October 2020, supplies through this route fell to 97,000 barrels per day.
In early January 2021, the US Energy Information Administration reported that weekly imports of Saudi oil fell to zero, the first time in 35 years.
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Nonetheless, the flows seen in November are exceptionally small, especially given that September supplies from the kingdom to the US hit 667,000 barrels per day, the highest in more than two years. Saudi Arabia also raised US crude prices for November.
Saudi oil exports to China fell to 1.6 million barrels per day last month from 1.9 million in October, the highest since May 2020 year Demand in China was dampened by the country's “zero-covid” policy, which contributed to an overall drop in oil prices in November.
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