• 4 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 7 minutes Beijing Must Face Reality That Taiwan is Independent
  • 11 minutes Phase One trade deal, for China it is all about technology war
  • 14 minutes Shale Oil Fiasco
  • 2 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 8 mins Which emissions are worse?: Cows vs. Keystone Pipeline
  • 55 mins Indonesia Stands Up to China. Will Japan Help?
  • 20 hours Thanks to Trump, the Iranian Mullahs Are Going Bankrupt
  • 13 hours Trump capitulated
  • 6 hours What's the Endgame Here?
  • 4 hours Trump has changed into a World Leader
  • 14 hours Gravity is a scam!
  • 1 day Yet another Petroteq debt for equity deal
  • 7 hours Turkey Muscles-In on Israel-Greece-Cyprus EastMed Gas Pipeline Deal. Erdogan Still Dreaming of Ottoman Empire II.
  • 13 hours US Shale: Technology
  • 23 mins Prototype Haliade X 12MW turbine starts operating in Rotterdam
Alt Text

China’s Cheap Electric Vehicles Could Disrupt Global Markets

China’s legion of electric vehicle…

Alt Text

The Hottest Energy Investment Niche Of 2020

Most energy analysts are very…

Alt Text

This Shale Giant Is Ready For A Rebound

Occidental Petroleum has come under…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Premium Content

Footloose Iraq Cannibalizes Saudi Market Share

Saudi Arabia continues to lead the charge in terms of the OPEC production cut deal - not only by keeping exports in check, but also by clearly communicating its next steps. By following through on its rhetoric, it has brought some much-needed credibility to the production cut deal - despite a lack of commitment from some other members.

These efforts by Saudi Arabia can be clearly seen in U.S. crude imports of OPEC crude. Deliveries in July dropped below year-ago levels for the first time since late 2015, and absolute volumes have continued to drop in the two months since. Part of this drop relates to hurricane activity on the U.S. Gulf Coast reining in refinery operations...but some is a conscious effort:

(Click to enlarge)

Much of this descent has been led by Saudi Arabia, whose deliveries averaged just over 700,000 bpd in Q3, after averaging 1.1 million bpd in Q2, and nearly 1.3 million bpd in Q1. Iraqi crude arrivals peaked in Q2 at nearly 700,000 bpd, but dropped last quarter. Nonetheless, Iraqi crude flows to the U.S. so far this year are still up over 40 percent versus year-ago levels.

As refining activity on the U.S. Gulf Coast gradually returns to normal after hurricanes Harvey and Nate, Iraqi flows are set to see a return to form, Saudi less so.

(Click to enlarge)

As Saudi Arabia dials back its crude exports, flows have dropped to various key demand regions, not just the U.S. We can see in our ClipperData that Saudi flows into China have also dropped. Countering this drop, we have seen an increase in deliveries from all manner of places, from West Africa to Latin America. But we have also seen an increase from Saudi's cartel comrades, Iran and Iraq. Related: Oil Prices Poised To Rise In Early 2018

Iran is not part of the OPEC production cut deal, hence is under no obligation to curtail its output. As for Iraq, it seemingly carries on regardless: footloose and fancy free.

(Click to enlarge)

By Matt Smith

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News