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Saudi cuts Q4 oil supplies to Asia, Iran exports more |
SINGAPORE: Saudi Arabia cut oil exports to its three largest Asian customers by nearly 4% in the fourth quarter against the third, while Iranian shipments rose to near year-ago levels, calculations based on official data showed.
The Saudi cuts of a total 88,000 barrels per day (bpd) support other evidence showing compliance with Opec curbs that came into force on November 1.
The Iranian shipments indicate that refiners in South Korea and China have taken up supplies rejected earlier this year by Japan.
Japan, South Korea and China together imported some 2.362mn bpd of Saudi crude during last quarter, or about a third of the kingdom’s total exports.
That was down a hefty 5.4%, or 135,000 bpd, from a year ago, when the three countries imported close to 2.5mn bpd of Saudi crude, Reuters calculations showed.
Opec agreed to lower its supplies by 1.2mn bpd from November 1 in an attempt to shore up prices, with top exporter Saudi Arabia expected to bear the brunt with a 380,000-bpd reduction.
In December alone, the first month when reduced shipments would be reaching customers, Saudi exports to number-two market Japan were down 6% compared to October.
North Asia accounts for most imports of Saudi crude into Asia, with the Opec linchpin selling an estimated half of its 7mn bpd exports to the whole of Asia.
Asian imports of Iranian crude rose 8.5% from the third quarter to the fourth, reaching some 1.022mn bpd. Iranian officials had said their Opec curbs would only impact European, not Asian customers.
Meanwhile, Middle East trading sources said Saudi Arabia has steeply raised the amount of its jet fuel earmarked for the US military, which is expanding its presence in the Gulf.
They said state oil company Saudi Aramco may have put aside upwards of a million tonnes of the aviation fuel for possible use by the US military this year, compared with around 200,000 tonnes in 2006.
“I believe that Saudi Arabia was warned in advance of the increased US military activity starting early 2007 and may have allocated 1mn to 1.2mn tonnes of jet fuel for possible use by the US military during 2007,” one source said.
The Pentagon dispatched a second aircraft carrier strike group to the Gulf last month.
The Defense Energy Support Center (DESC), which oversees the Pentagon’s fuel purchases, said an increased presence would entail more fuel demand. – Reuters |
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