Saudi Crude Oil Exports Rise to Two-Year Peak in April

Saudi Arabia’s April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April from 7.235 million bpd in March. (Reuters)
Saudi Arabia’s April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April from 7.235 million bpd in March. (Reuters)
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Saudi Crude Oil Exports Rise to Two-Year Peak in April

Saudi Arabia’s April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April from 7.235 million bpd in March. (Reuters)
Saudi Arabia’s April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April from 7.235 million bpd in March. (Reuters)

Saudi Arabia’s April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April from 7.235 million bpd in March, data from the Joint Organizations Data Initiative (JODI) showed on Monday.

The Kingdom’s crude oil output also increased to 10.441 million barrels per day in April, up from 10.3 million bpd in March.

Saudi Arabia is on track to lift oil production capacity by more than one million bpd to over 13 million barrels bpd by the end of 2026 or early 2027, the energy minister said last month.

The country’s domestic crude refinery throughput fell 0.235 million bpd to 2.538 million bpd in April while direct crude burn rose 62,000 bpd to 397,000 bpd.

Oil product exports eased 0.015 million bpd to 1.473 million bpd in April, while demand for oil products rose 0.177 million bpd to 2.234 million bpd in April, the data showed.

The data also highlighted that global oil demand fell month-on-month in April to below pre-pandemic levels as consumption softened across several Asian countries.

Monthly export figures are provided by Riyadh and other members of the Organization of the Petroleum Exporting Countries (OPEC) to JODI, which publishes them on its website.

Meanwhile, China's crude oil imports from Russia soared 55% from a year earlier to a record level in May, displacing Saudi Arabia as the top supplier, as refiners cashed in on discounted supplies amid sanctions on Moscow over its invasion of Ukraine.

Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia's European and Far Eastern ports, totaled nearly 8.42 million tons, according to data from the Chinese General Administration of Customs.

That's equivalent to roughly 1.98 million bpd and up a quarter from 1.59 million bpd in April.

The data, which shows that Russia took back the top ranking of suppliers to the world's biggest crude oil importer after a gap of 19 months, indicates that Moscow is able to find buyers for its oil despite western sanctions, though it has had to slash prices.

While China’s overall crude oil demand has been dampened by COVID-19 curbs and a slowing economy, leading importers, including refining giant Sinopec, have stepped up buying cheaper Russian oil on top of sanctioned supplies from Iran and Venezuela.

Customs data released on Monday also showed China imported 260,000 tons of Iranian crude oil last month, its third shipment of Iran oil since last December.



Oil Tumbles Further as US-China Trade Tensions Fuel Recession Fears

FILE PHOTO: A general view shows Marathon Petroleum's oil refinery, following Russia's invasion of Ukraine, in Anacortes, Washington, US, March 9, 2022.  REUTERS/David Ryder/File Photo
FILE PHOTO: A general view shows Marathon Petroleum's oil refinery, following Russia's invasion of Ukraine, in Anacortes, Washington, US, March 9, 2022. REUTERS/David Ryder/File Photo
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Oil Tumbles Further as US-China Trade Tensions Fuel Recession Fears

FILE PHOTO: A general view shows Marathon Petroleum's oil refinery, following Russia's invasion of Ukraine, in Anacortes, Washington, US, March 9, 2022.  REUTERS/David Ryder/File Photo
FILE PHOTO: A general view shows Marathon Petroleum's oil refinery, following Russia's invasion of Ukraine, in Anacortes, Washington, US, March 9, 2022. REUTERS/David Ryder/File Photo

Oil prices extended last week's losses on Monday, with WTI falling more than 4%, as escalating trade tensions between the United States and China stoked fears of a recession that would reduce demand for crude.

Brent futures declined $2.54, or 3.9%, to $63.04 a barrel at 0745 GMT, while US west Texas Intermediate crude futures lost $2.5, or 4.03%, to $59.49. Both benchmarks dropped their lowest since April 2021.

Oil plunged 7% on Friday as China ramped up tariffs on US goods, escalating a trade war that has led investors to price in a higher probability of recession. Last week, Brent lost 10.9%, while WTI dropped 10.6%.

"It's hard to see a floor for crude unless the panic in the markets subsides and it's hard to see that happening unless Trump says something to arrest snowballing fears over a global trade war and recession," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Responding to US President Donald Trump's tariffs, China said on Friday it would impose additional levies of 34% on American goods, confirming investor fears that a full-blown global trade war is underway.

Imports of oil, gas and refined products were given exemptions from Trump's sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices.

Federal Reserve Chair Jerome Powell said on Friday that Trump's new tariffs are "larger than expected," and the economic fallout including higher inflation and slower growth likely will be as well.

Adding to the downward momentum, the Organization of the Petroleum Exporting Countries and allies (OPEC+) decided to advance plans for output increases. The group now aims to return 411,000 barrels per day (bpd) to the market in May, up from the previously planned 135,000 bpd.

"This potential influx of supply, reversing cuts maintained over the past two years, represents a major shift in market dynamics and acts as a significant headwind for prices," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Over the weekend, top OPEC+ ministers stressed the need for full compliance with oil output targets and called for overproducers to submit plans by April 15 to compensate for pumping too much.

On the geopolitical front, Iran on Sunday rejected US demands that it hold direct nuclear talks or face strikes. Russia claimed to have captured Basivka in Ukraine's Sumy region and said its forces were attacking multiple nearby settlements.