This may indicate a lack of demand, despite a sharp drop in prices during the struggle of large producers for market share.
Saudi Arabia plans to export more than 10 million barrels per day since May after the termination of the supply limitation agreements between OPEC and other producers led by Russia.
March exports are still significantly behind this indicator and are generally at the February level, sources say. This may reflect a decrease in demand from buyers, including China, after the outbreak of coronavirus.
“Saudi exports in March so far reach 7.3 million barrels per day, no more,” one source said on condition of anonymity. “Total shipments are well below 10 million barrels per day.”
Refintiv Eikon’s tanker data indicates even lower exports, just below 7 million barrels per day since early March.
In February, oil exports from Saudi Arabia totaled 7.26 million barrels per day, according to Kpler. Another source in the industry estimates this figure at 7.4 million barrels per day.
Before the collapse of the OPEC + deal in early March, Saudi Arabia exceeded the requirements to reduce production. The country reported oil production in February at 9.78 million barrels per day against the level of 10.14 million barrels per day stipulated by the OPEC + agreement.
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