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Saudi Oil Exports Fall to 6.72 bpd in June

Saudi Oil Exports Fall to 6.72 bpd in June

Tuesday, 20 August, 2019 - 06:45
A derrick pumps in an oilfield January 15, 2003, near the Saudi Arabian border, Kuwait. Getty Images/Joe Raedle
London - Asharq Al-Awsat

Saudi Arabia's crude oil exports in June fell to 6.72 million barrels per day (BPD) from 6.94 million BPD in May, official data showed on Monday.

Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) provide monthly export figures to the Joint Organizations Data Initiative (JODI), which publishes them on its website.

“The oil market seems to be pricing in again a geopolitical risk premium following the weekend drone attacks on Saudi Arabia, but the premium might not sustain if it does not result in any supply disruptions,” said Giovanni Staunovo, an oil analyst for UBS.

OPEC cut its forecast for global oil demand growth in 2019 by 40,000 barrels per day (BPD) to 1.10 million BPD and indicated the market would be in slight surplus in 2020.

Meanwhile, two reliable sources in Beijing told Reuters said that China National Petroleum Corp, a leading buyer of Venezuelan oil, has halted August loadings following the latest US sanctions on the South American exporter.

The Trump administration in early August froze all Venezuelan government assets in the United States and US officials ratcheted up threats against companies that do business with Venezuela.

“Trump’s executive order gave a directive for the follow-up sanction measures that shall be announced by the US Treasury... CNPC is worried that the company is likely to be hit by the secondary sanctions,” said one source.

A second person, an executive with a large marketer of Venezuelan oil in China, said his company had been notified of the suspension.

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