*Europe Next on the Crude Splurge List*
After the reports a few weeks ago of the Chinese increase in crude buying, it seems that this is now waning. China has bought so much crude that its inventories have hit a record 847.50 million barrels in the week that began June 22, Kpler data showed. With the drop in demand from the East, physical providers are noting a lack of demands for July loadings. This has led to the assumption that in Europe the supply is going to have to be absorbed by local markets, rather than by significant exports to further afield.
*Saudis Taking Seven Supertankers a Day Off Market*
Saudi crude exports have been observed to have dropped to 5.7 million bpd in June, the lowest level in some 3 years. The equivalent drop in volumes from May is seven Supertankers full of crude, or if you want the numbers, down from 6.2 million bpd. Much speculation and interest has concentrated on the OPEC+ cut deal to support prices and, for the moment, it looks like combined with creeping up demand they are doing a good job of it.
*South Korea’s Crude Imports Not What They Once Were*
Year on year imports of crude into South Korea fell 14.5% this month to 73.3 million bbls. Numbers were down from May which was 78.8 million and indicates another example of the difficulty for oil producers on betting on a quick return to high levels of oil demand.
*Russian Oil Falls Out of Vogue with Europeans*
Levels of Russian crude have hit two-decade lows as Europe falls out of love with Ural crude imports. Shipments to Europe are expected to drop 3.8 million tonnes this month. The attractiveness of Russian crude has been hit by its rising price compared to cheaper and more abundant supplies from the United States and domestic European production. Flows from the US have reached nearly 3 million tonnes in recent months, and the large new Norwegian Johan Sverdrup oil field increasing production after a long period of stagnating volumes.