• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours Iran Is Winning Big In The Middle East
  • 43 mins China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 5 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 13 hours Trump cancels Denmark visit amid spat over sale of Greenland
  • 21 mins Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 12 mins Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 22 hours US to Drown the World in Oil
  • 3 hours Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 3 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 12 hours OPEC will consider all options. What options do they have ?
  • 1 day Nor Chicago, nor Detroit: Killings By Police Divide Rio De Janeiro Weary Of Crime
  • 1 day Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 20 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
The Fatal Flaw In The Ethanol Industry

The Fatal Flaw In The Ethanol Industry

The ethanol industry is extremely…

Shale Bleeds Cash Despite Best Quarter In Years

Shale Bleeds Cash Despite Best Quarter In Years

The second quarter earnings results…

Russia Regains Status As China's No.1 Crude Supplier

Refinery

China imported daily average of 4.69 million tons, or 34.38 million bpd, of crude oil from Russia last month. That’s 9.3 percent more than the February average, putting Russia back at the top spot of China’s foreign oil suppliers, above Angola, which sits at number 2. Saudi Arabia fell to number 3 in March, as it cuts output deeper than it was expected to under the OPEC agreement from November.

The shuffle comes amid talks in OPEC about extending the six-month production output cut to further strengthen prices, which turned out to be less responsive to the international effort than expected.

Indeed, in six of the last seven trading sessions, crude oil benchmarks actually slipped as doubts about an extension agreement begin to rise among traders. WTI is back below $50 and Brent is holding a smidge above.

The doubts came as it emerged that global supplies are still close to record highs, despite OPEC’s efforts to trim them since January. In fact, over the first quarter of the year, these supplies have increased, reversing the initial enthusiasm with which markets greeted the news of the agreement.

Now Russia is fueling the worry further: Reuters reported that some Russian government officials have said the country’s oil production could rise to the highest in 30 years in 2017 if the extension agreement falls through. The possibility is reflected in local oil companies’ investment plans for the year.

Related: Is Australia The Next Big Thing In Shale?

For now, Russia has given its broad support for an extension, although the only specific that has come from Energy Minister Alexander Novak so far was a comment made in March stating that it is too early to discuss the issue.

Meanwhile, Saudi Arabia’s King Salman has removed austerity measures aimed to narrow the budget gap opened by the low oil prices. This, according to big-name commodity analysts, makes the extension particularly important for the Kingdom. It is likely that Saudi Arabia will again spearhead the drive for an extension and could possibly agree to cut its own output further, which will allow Russia to cement its place as top supplier to China.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play