Bloomberg: Saudi Arabia Turns Off America’s Oil Taps Again
For the second time in three years, Saudi Arabia is slashing the volume of crude it’s sending to America in an attempt to force down stockpiles in the world’s most visible oil market and thereby hasten the rebalancing of supply and demand.
Weekly U.S. oil inventory data — usually published on a Wednesday and covering the period up to the previous Friday — is routinely pored over by oil analysts and traders alike. Despite their shortcomings, the figures give the most up-to-date picture of changes in the oil balance and influence trading decisions and crude prices around the world.
Shifts in the flow of crude into and out of American ports can have a big impact on the level of U.S. inventories. Riyadh has clearly decided it’s time to do its bit to bring them down from heights reached in May and June, when the coronavirus pandemic and the kingdom’s own output hike combined to drive the fastest ever surge in U.S. commercial crude stockpiles. In the five weeks between March 20 and April 24, the inventories increased at a rate of 2.1 million barrels a day and by the first week of June it was hitting new highs.
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WNU Editor: This will mean smaller inventories and higher gas prices .... just when Americans are going to the polls in November.It looks like Saudi Arabia is taking a side in the US Presidential election.
12 comments:
OCRUMBOGATE.
Well, the Democrats have been veering away from the Jewish american community and heading to the Muslim Community. So Saudi Arabia is just helping out the Democrats.
Democrats have a natural affinity for Saudi Arabia given its ranking of 1.93 in the Democracy index. Even as we speak good Democrats everywhere are spit shining their jackboots in anticipation of a win. Time to get Antifa and BLM into some snazzy uniforms.
Damn furriners. Let's blame them for the administration's gross incompetence.
Let's blame president Biden, too. And Mexicans.
Looks like we’ll just have to up our fracking quotas.
The problem is not foreigners. 1/2 my family is made up for foreigners. The problem is with foreigners of certain policies or mindsets.
7:32, I bet you and John Kerry think you are both funnier than hell, when you code switch into an affected accent of what you think no-liberals talk like.
Wnu is your interpretation correct?
Couldn't it also mean the Saudis are expecting another covid shutdown and with that lower need for oil? Otherwise they run into that scenario again where ships crew etc need to be paid but no oil is sold/ accepted at the target port.
Correct me if I'm wrong. Just spitballing here
Better destroy social security and medicare, that'll solve all our problems.
Then bomb Iran. And blame Honduras.
Why do you need social security, if union jobs are the panacea?
If government intervention is the key, why did the Tokugawa shogunate and Nixon fail with price controls?
I like you. You're easy. You don't have to be paid to go down. You do it for free. 3 times you posted and 3 times you went on tangents.
Since you went out on a tangent, turnabout is fair play
KILLER FAUCI: Even Developing Nations Algeria, India, Indonesia, Cuba That Used HCQ Fared Better than US in Treating Coronavirus — By an Average of 79% Better!
For the second time in three years, Saudi Arabia is slashing the volume of crude it’s sending to America in an attempt to force down stockpiles in the world’s most visible oil market and thereby hasten the rebalancing of supply and demand.
Excess stockpiles act as a drag on oil prices and the most visible stockpiles are in the U.S. because the Department of Energy’s Energy Information Administration reports levels weekly. That’s in stark contrast to other places around the world where the data are much less timely, if they are published at all. China, for example, stopped divulging official data on inventory levels in 2017.
By once again focusing its output cuts on the U.S. market, Riyadh is hoping to repeat the success of the second half of 2017, when oil prices rose by 51% from a low of $44.82 in mid-June to $67.87 by the end of the year.
https://www.bloomberg.com/amp/opinion/articles/2020-08-09/coronavirus-glut-saudi-arabia-turns-off-the-u-s-oil-taps-again?sref=866aH6XX&__twitter_impression=true
Higher oil prices revive shale oil production in the USA, ahead of the election. SA could be doing President Trump a solid.
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