*China’s July Diesel Exports Hit Five Year Low
China’s diesel exports fell by two thirds comparing to last July, as weakening demand from overseas has forces refineries to concentrate on domestic consumers. Only 550,000 tons were exported in July, a drop of half of levels seen only in June according to Reuters. Yet, domestic demand is set to reach record highs according to analysts as a result of increased trucking activity and exports are expected to pick up in august for diesel and gasoil at 1.56 million and 1.37 million tons, respectively.
*Saudi Crude Exports Plunge in June to Lowest on Record
Exports of Saudi Crude fell 17.3% from the month before to just under 5 million barrels per day as noted by Reuters, levels last seen in January 2002, with crude production only falling 12% month on month. This is on top of the increasing stocks which now stand at over 153.035 million barrels. Although, according to the JODI Website, Saudi oil product demand rose by 330,000 bpd in June.
*OPEC+ Needs to Offset Large May-July Oversupply
OPEC producers that produced over their specific quota will be forced to slash production by 1 million barrels per day for over 2 months, in order to minimize oversupply as the world economy begins to crawl into a recovery, which if evenly distributed amongst OPEC nations such as Iraq and Nigeria, would mean a reduction of just under 9 million barrels per day over August and September according to an OPEC source. The non-compliant over suppliers to the market have until the end of this week to submit plans for production for August and September.
*U.S. Oil Inventories Point to Fragile Recovery
Crude stocks in the US have fallen 23 million barrels, with a fall of 5 million in the previous week from a record 2.11 billion at the start of the July. Demand is far from usual levels seen for the period, but refiners are holding back on supply to work off the excess stock, which are 4% above average. Gasoline stocks are 7% and distillate stocks are 24% above average for the period according to Reuters.
*Oil Firms Evacuate Staff, Curb Offshore Production Ahead of Twin Storms
Storms that are expected to batter the Gulf of Mexico are causing mass evacuations of oil rigs that Reuters say will equate to the closure of 13% of the production capacity in the area which accounts for 17% of total US crude output and 5% of Natural Gas production. The two storm that are set to take hold of the area are expected to become category one hurricanes, with the evacuations completed by Sunday 23rd August.