• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 8 mins Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 day Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 12 hours Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 1 day Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 13 hours Modest drop in oil price: SPRs vs US crude inventory build
  • 23 hours 2019 - Attack on Saudi Oil Facilities.
  • 3 days Ukrainian Maidan after 8 years
  • 3 days Peak oil - demand vs production
  • 4 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 4 days NordStream2
  • 4 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Will Biden’s $1 Trillion Infrastructure Bet Pay Off?

Will Biden’s $1 Trillion Infrastructure Bet Pay Off?

President Biden’s $1 trillion infrastructure…

Why Did Nuclear Power Fail The First Time Around?

Why Did Nuclear Power Fail The First Time Around?

Nuclear power has once again…

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




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News