Saudi Oil Exports Were at 7 Month High as OPEC Kept Supply Intact

Saudi Arabia’s oil exports rose to a seven-month high in November when it led OPEC to keep production unchanged as the largest crude shipper fought to keep market share with output rising from the U.S. to Russia.

Saudi Arabia’s oil exports rose to 7.3 million barrels a day from 6.9 million barrels in October, according to data yesterday on the website of the Joint Organisations Data Initiative. Crude stockpiles at the end of the month stood at 305.8 million barrels, the highest level since at least January 2002, figures on the group’s website showed.

Saudi Arabia dropped its official selling prices in Asia for November sales to gain market share in the fastest-growing region for petroleum demand while it helped domestic refiners to be profitable. Brent crude futures have dropped about 35 percent since the Organization of Petroleum Exporting Countries unexpectedly maintained its production target of 30 million barrels a day on Nov. 27.

“The Saudis are trying to test the market with both higher volumes and lower prices,” John Sfakianakis, head of Ashmore Middle East, said by phone from Riyadh. “They are flooding the market with exports and storage while keeping the price of their crude competitive. These are signs that they will do all what they can to keep up the market share.”

Brent oil dropped 0.3 percent to $50 a barrel by 8:16 a.m. in Dubai, extending the decline to 53 percent in the past year.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza