Two industry sources tracking the flows said that Saudi Arabia had yet to post a significant increase in crude oil exports even after the collapse of the OPEC+ oil output cut pact.
The phenomenon signs a lack of demand globally, as oil price crash due to the oil market share war could not help boost buyings.
So far in March, Saudi’s crude exports are still significantly below the kingdom’s new target of 10 million bpd in May and instead just showed a little change from February. Lower demand from customers such as China due to the new coronavirus pandemic is said to be the main factor behind it.
One source said that the kingdom’s exports so far in March is at 7.3 million bpd area and not more, while the total supply is noticeably below 10 million bpd. Tanker data from Refinitiv Eikon estimated even a lower number at just below 7 million bpd this month.
The number would not be far from February’s estimates at around 7.3-7.4 million bpd.
The global demand for crude has been shaken as Brent crude has fallen to below USD25/barrel, the lowest since 2003. Thus, Saudi’s deep cut in its official selling price for April-loading crude, and plans next month to reduce operations at local refineries to increase crude exports are expected to face challenges.
