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Page added on August 4, 2019

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Saudi Arabia Is Steering Ever More Oil to China, Draining the U.S.

Consumption

Signals from oil tankers last month suggest that Saudi Arabia is sending an ever-larger portion of its crude to China — with the U.S. losing out.

Saudi Arabia’s observed exports to China soared to 1.74 million barrels a day in July, the highest since Bloomberg began tracking the tanker shipments in January 2017. At the same time, the kingdom’s shipments to the U.S. appear to have tumbled to 161,000 barrels a day, the lowest during that same period.

Saudi crude exports to China soared in July. Flows to the U.S. slumped

The divergence illustrates the current state of energy geopolitics. The Organization of Petroleum Exporting Countries — of which Saudi Arabia is the largest producer — and a group of allies last month agreed to extend production cuts. A big reason behind the curbs is soaring U.S. output, which is near record levels in weekly data. U.S. inventories have dropped in recent months as Saudi shipments to the country have declined.

At the same time, Saudi Arabia has grabbed a greater slice of China’s market as U.S. sanctions cripple exports from Iran, the kingdom’s regional rival. Saudi crude flows to markets east of the Suez Canal were about 5.1 million barrels a day last month, tracking data show, and the number is likely to rise as some ships indicate their final destinations. Saudi flows west of Suez appear to have dropped to about 1.1 million barrels a day in July.

“East is where their focus is,” said Amrita Sen, chief oil analyst at Energy Aspects Ltd. in London, noting that China has refineries with about 800,000 barrels of daily capacity starting up. “The West has been cut quite significantly.”

Overall, Saudi shipments haven’t changed dramatically in recent months — the 6.7 million barrels a day in observed cargoes the kingdom exported in July is only about 200,000 daily barrels less than in June.

China’s Appetite

China imported a record amount of crude from Saudi Arabia in June, according to data from its General Administration of Customs. The country has a growing appetite for the feedstock, with the Hengli Petrochemical and Zhejiang Petrochemical megaprojects scheduled for this year. The Hengli plant in Dalian reached full capacity in May.

With China grabbing more Saudi crude, flows to India, Japan and South Korea also appear to have declined last month. Just three crude-laden ships sailed from Saudi Arabia for the U.S. in July — one each for the East, West and Gulf Coasts — though more could emerge in the coming days as tankers indicate their final destinations. U.S.-bound flows are down from 1.03 million barrels daily in July 2018.

Of the vessels that loaded crude in Saudi Arabia in July, ships holding some 13 million barrels haven’t yet revealed where they’re headed. Almost half of that amount is likely sailing east, tracking signals show.

bloomberg



48 Comments on "Saudi Arabia Is Steering Ever More Oil to China, Draining the U.S."

  1. Cloggie on Sun, 4th Aug 2019 9:55 am 

    “Signals from oil tankers last month suggest that Saudi Arabia is sending an ever-larger portion of its crude to China — with the U.S. losing out.”

    Direct consequence of increased geopolitical weight China.

    https://documents1940.files.wordpress.com/2017/10/risendfallofempires.jpg

  2. Robert Inget on Sun, 4th Aug 2019 11:21 am 

    China is busy building a sort of grand Petroleum Reserve in plain sight. Going around Trump’s Iran Oil Embargo, China
    is ‘storing’ millions of barrels in so called ‘free trade zones’.
    IOW’s China and Iran are bartering oil for (weapons?) and other goods, food stuffs, now in surplus due to Trump’s ‘War on Free Trade’.

    No actual coin is being transacted… Yet.
    China’s near term goal is to replace lost sales to the US by offering trade incentives to Iran and anyone who has commodities needed in China.
    One important oil deal must be buying ‘protection’ from Chinese and Russia military. Keep US forces at bay and China get all the oil they can burn or store for future use.

    Ultimately, China and Russia need to undermine the USD as a universal trading currency. With the help of Iran’s good quality crude oil, Venezuela’s massive, almost untapped reserves, the plan proceeds.

    There is mounting evidence Saudi Arabia is long past ‘peak’.

    Trump and his advisors are mindfully or not, helping Fascist Russia and Communist China accomplish utterly destroying
    America’s ability to borrow at reasonable rates thereby killing the US economy. Threatening Iran and Venezuela with military intervention only itensfies our desperation for a reliable crude supplier.

    Canada: It’s all aboot pipelines. Now that government owned ‘TransMountian’ pipeline is under construction, Alberta won’t be held hostage selling oil to a single customer. By next year US consumers need to compete with Asia for pricing.
    Canada has Not called for tariffs on Chinese goods.
    (I’ll bet a silver dollar China is helping with discounted steel or cash for that much needed PL)

    In the past, Canada will not operate pipelines but will sell back to private interests.

  3. Robert Inget on Sun, 4th Aug 2019 12:04 pm 

    DUBAI — Iran has seized a foreign tanker in the Gulf carrying 700,000 liters of fuel, Iranian state TV said Sunday, citing the country’s Revolutionary Guards.

    Seven sailors on board have also been detained, according to Revolutionary Guard commander Ramezan Zirahi, who was quoted by Al Mayadeen TV.

    “The IRGC’s naval forces have seized a foreign oil tanker in the Persian Gulf that was smuggling fuel for some Arab countries,” state TV quoted Zirahi as saying.

    “It carried 700,000 liters of fuel. Seven sailors onboard of the tanker, who are from different nationalities, were detained.” The tanker’s origin is unclear. The U.S. Navy’s Fifth Fleet in Bahrain said it did not have sufficient information to confirm the reports.(30)

    Small costal tankers are ‘soft’ targets. Nevertheless, Iran is confident no one can or will do anything.
    The aim here is to drive up insurance costs beyond affordability. Such nuisance raids should do the trick.

  4. Robert Inget on Sun, 4th Aug 2019 12:39 pm 

    As long as there is a single barrel of USEABLE oil remaining in America’s SPR, Trump will allocate that barrel.
    This administration has No Energy Plan. There is No Plan to replace Saudi or Venezuelan crude. None.

    Most importantly, Canada, America’s #1 supplier can’t, for lack of pipelines, replace missing Saudi crude.

    Venezuela, despite Chevron’s efforts is supposadlly not exporting product to the US. (I think it is. I believe this may be provable.) In any case, Venezuela needs to supply Cuba for immeatiate military protection and China for debt service.

    Most devastating of all for auto commuters, our shale production is finally falling off the roof.
    Not being able to make money, (Q/2 earning are out) investors are shying away from any new issues.
    Here’s the real scoop.
    There are many US and Canadian oil companies that have nothing to do with shale. Most are in the toilet along with Big Shale. The trick, check earnings, cash flow before you invest or short. Dozens of US, Canadian companies are selling far below replacement cost even at $50 WTI .

    SHALE NEEDS $80 to break even.

    Here’s the bazzar part. When NG and oil are cheap users tend to burn more. Pipelines, like RR’s, tankers or truckers get paid for transporting products. Demand has never been higher.

    Pipelines are paying six to 10% dividends, selling far below cost of replacement. an example:

    HOUSTON, July 23, 2019 (GLOBE NEWSWIRE) — TC PipeLines, LP (TCP) (the Partnership) today announced that the board of directors of TC PipeLines GP, Inc., its general partner, declared the Partnership’s second quarter 2019 cash distribution of $0.65 per common unit. The distribution is unchanged from the distribution declared for the first quarter of 2019.

    This cash distribution is the 81st consecutive quarterly distribution paid by the Partnership and is payable on August 14, 2019 to unit-holders of record at the close of business on August 2, 2019.

  5. Robert Inget on Sun, 4th Aug 2019 1:01 pm 

    https://www.youtube.com/watch?v=q_AyhsII_u8

    CBS News
    Published on May 3, 2019
    President Trump said he mainly focused on the crisis in Venezuela in his hour-long conversation with Russian President Vladimir Putin. Watch his remarks from the White House.(30)

    Keep in mind, Putin doubtless has his own oil money invested in Venezuela. (Putin, one of richest men in world)

    So, here’s Trump taking orders from Putin in the open.
    “Keep your mitts off Venezuela” or our ‘deal’ is off.

  6. Chrome Mags on Sun, 4th Aug 2019 3:59 pm 

    But, but, I thought the trade war was hurting China?! Uh, instead their economic engine must still be ratcheting up using ever more oil(energy).

    What would happen to the world economy if all Chinese products on container ships did not unload at US ports for 3 consecutive months? It’s kind of an interesting question, because isn’t it possible one side or the other could get that worked up about trade, trade could be halted?

  7. Gaia on Sun, 4th Aug 2019 4:33 pm 

    China is a safe country. Crime is very low, the Chinese government is trying its best to improve the quality of life for ALL of its people. America is neglecting its own people (the quality of life in the US is getting worst).

  8. JuanP sock fraud on Sun, 4th Aug 2019 5:44 pm 

    Gaia on Sun, 4th Aug 2019 4:33 pm

  9. JuanP on Sun, 4th Aug 2019 5:49 pm 

    “It’s All About The Benjamins”
    When U.S. rapper Puff Daddy released his hit single “It’s All About the Benjamins” in 1997, he was way ahead of his time. Back then, the $100 bill the song refers to was only the third most popular dollar note, trailing the ubiquitous $1 dollar note and the $20 dollar note in terms of circulation, but 20 years and several nicknames later, Diddy’s prophecy would eventually be fulfilled. However, as Statista’s Felix Richter notes, according to Federal Reserve data quoted by the IMF, the $100 bill became the most circulated currency in the world in 2017, overtaking the $1 bill for the first time ever. What’s even more interesting though, is the fact that an estimated 80 percent of the 13.4 billion $100 notes in circulation are held outside the United States, compared to “just” 60 percent of all 43 billion U.S. dollar bills. So what makes the $100 bill so popular in and especially outside the United States? Apart from political and monetary instabilities driving demand for U.S. dollars, especially in large denominations, as a safe-haven currency, i.e. a stable and secure asset, Harvard University’s Kenneth Rogoff has another theory: “Worldwide, high-value currency notes are mainly used to avoid taxes and regulation, and for illegal activity,” he observes. “Apartments and houses in major cities all over the world are paid for with suitcases of cash every day, and it is not because the buyers are afraid of bank failures.” All of which is odd… because we were led to believe that Bitcoin (and the rest of the corrupt cryptos) were entirely responsible for all fraud around the world…Mnuchin believes that cash is not laundered like Bitcoin is…After Mnuchin clearly said that Bitcoin’s vulnerability to money laundering is the main reason for the Treasury to regulate it tightly, CNBC’s host Joe Kernen questioned his point in an interview on Squawk Box on July 18. Kernen argued that Bitcoin and other existing currencies’ capabilities to be used for nefarious activities cannot be a reason for banning them, noting that “cash is laundered all the time.” Mnuchin did not back off from his position, replying that such a statement is not accurate. “I don’t think that’s accurate at all, that cash is laundered all the time,” The Secretary elaborated that the U.S. has the strongest anti-money laundering (AML) system in the world, adding that the government combats “bad actors in the U.S. dollar every day to protect the U.S. financial system.” Following the interview, Kernen expressed sarcasm about Mnuchin’s idea that cash has not been laundered all the time, but the authorities are combating illicit activities in its system. He tweeted: “‘The existing system has never been used for illicit activities but we’re going to make sure crypto is isn’t used for illicit activities like the current system.’ Got it.”

  10. More Davy Fraudulent ID Usage on Sun, 4th Aug 2019 5:49 pm 

    JuanP sock fraud on Sun, 4th Aug 2019 5:44 pm

  11. makati1 on Sun, 4th Aug 2019 5:49 pm 

    Yep! US America is going down. It is committing suicide in so many ways. Trump is doing a great job of making Amerika into a 3rd world, or worse, country. go trump!

  12. More Davy ID Theft on Sun, 4th Aug 2019 5:50 pm 

    JuanP on Sun, 4th Aug 2019 5:49 pm

  13. JuanP identity fraud on Sun, 4th Aug 2019 5:50 pm 

    makati1 on Sun, 4th Aug 2019 5:49 pm

  14. makati1 on Sun, 4th Aug 2019 5:50 pm 

    BTW: The EU is not far behind. And then there is Japan and Australia. will they wake up and dump the warmongering US before they too go 3rd world? We shall see.

  15. Gaia on Sun, 4th Aug 2019 5:51 pm 

    Gaia on Sun, 4th Aug 2019 4:33 pm

  16. makati1 on Sun, 4th Aug 2019 5:51 pm 

    makati1 on Sun, 4th Aug 2019 5:49 pm

    nope that was really me

  17. JuanP sock on Sun, 4th Aug 2019 5:51 pm 

    Gaia on Sun, 4th Aug 2019 5:51 pm

  18. makati1 on Sun, 4th Aug 2019 5:52 pm 

    Actually, those two posts are me, and it is obvious by the comments. A sunny Monday morning here in the land of eternal summer.

  19. JuanP on Sun, 4th Aug 2019 5:53 pm 

    Mak, tell us more about hat you did today

  20. Davy on Sun, 4th Aug 2019 5:53 pm 

    “Yep! US America is going down. It is committing suicide in so many ways. Trump is doing a great job of making Amerika into a 3rd world, or worse, country. go trump!”

    Deagel dot com is looking more and more correct every day.

  21. JuanP on Sun, 4th Aug 2019 5:54 pm 

    OOPs I forgot you just got up. How did you sleep last night?

  22. JuanP on Sun, 4th Aug 2019 5:55 pm 

    I am going to bed early because my chronic depression is acting up.

  23. Davy on Sun, 4th Aug 2019 5:56 pm 

    This is so mentally stimulating for me I think I might have had a orgasm.

  24. Boney Joe on Sun, 4th Aug 2019 5:59 pm 

    Juan, are we going clubbing tonight? Please wear those tight white pants. I don’t mind your gut hanging out a little. Little ebony is fine

  25. JuanP on Sun, 4th Aug 2019 6:01 pm 

    Bone, I was just telling my wife yesterday that I would very willingly give my arms, legs, tongue, eyes, ears, nuts, and dick to experience life like normal people do for just one hour to know what it feels like. I have been a seriously depressed realist since I have a memory. My first memory of my life is of leaning against a tree alone in my kindergarten’s playground looking at all the other kids playing, thinking how stupid their behavior was, and wondering why I wasn’t like them. I basically don’t interact with normal people anymore. They have nothing to offer me and I don’t want to give them anything.

  26. More Davy ID Theft and Child Like Behaviour on Sun, 4th Aug 2019 6:01 pm 

    Boney Joe on Sun, 4th Aug 2019 5:59 pm

  27. More Davy ID Theft on Sun, 4th Aug 2019 6:03 pm 

    JuanP on Sun, 4th Aug 2019 6:01 pm

  28. Peak Oil Ombudsman on Sun, 4th Aug 2019 6:03 pm 

    Well, looks like the board moderators will have to stop the show again because juanP cannot play by the rules.
    He is given opportunity after opportunity to redeem himself, yet his darkside always wins. For this reason, as the designated Peak Oil Ombudsman, it’s incumbent upon me to aggressively moderate and neuter his naturally reflexive extremism, lies, hypocrisy, and personal vindictiveness.
    Yes, I have a difficult job to perform, but someone must step forward. I shall remain vigilant 24 hours a day, 7 days a week, and 365 days a year. I accepted this position and I refuse to let the readers of this site down.

  29. JuanP on Sun, 4th Aug 2019 6:03 pm 

    For the record. I am the real JuanP and I haven’t posted a single comment here since before Valentine’s Day. I’ve moved on to greener pastures. I would recommend you all do the same. Reading the comments here or posting something is a complete waste of your lives. This website is fucked beyond redemption. Move on, guys!

  30. JuanP on Sun, 4th Aug 2019 6:06 pm 

    I think I could use my antisocial, psychopathic, sociopathic skills to convince people to vote for Trump. I can be very convincing when I want and I am excellent at manipulating people.…then you simply have a higher opinion of humans than I do. But what can I do? I am after all an admitted antisocial misanthrope. I just think most people suck!..I stopped caring about humanity’s future a long time ago once I realized it was a waste of my time and energy. Now I think that it would be best for life on Earth if we ceased to exist as a species.

  31. More Davy ID Theft on Sun, 4th Aug 2019 6:08 pm 

    JuanP on Sun, 4th Aug 2019 6:03 pm

    JuanP on Sun, 4th Aug 2019 6:06 pm

  32. makati1 on Sun, 4th Aug 2019 6:28 pm 

    Moving on, is a great suggestion JuanP! I visit this site less and less since the insanity explosion.

  33. JuanP on Sun, 4th Aug 2019 6:37 pm 

    mak, be patient, I have Davy right where I want him. You guys just be tough and suck up the shit I distribute. The end justify the means.

  34. makati1 on Sun, 4th Aug 2019 7:16 pm 

    OK, I’ll be patient. Go for it!

  35. Duncan Idaho on Sun, 4th Aug 2019 7:34 pm 

    Pop. 65 million
    Pop. 330 million (5x)

    Video game revenues: ≈$5 billion
    Video game revenues: ≈$25 billion (5x)

    Gun homicides (2017): 31
    Gun homicides (2017): 14,542 (469x)

  36. JuanP on Sun, 4th Aug 2019 8:29 pm 

    It sounds like you’re still upset with me for cumming in your mouth Davy. Get over it.

  37. Davy Projecting Again on Sun, 4th Aug 2019 8:57 pm 

    I think I could use my antisocial, psychopathic, sociopathic skills to convince people to vote for Trump. I can be very convincing when I want and I am excellent at manipulating people.…then you simply have a higher opinion of humans than I do. But what can I do? I am after all an admitted antisocial misanthrope. I just think most people suck!..I stopped caring about humanity’s future a long time ago once I realized it was a waste of my time and energy. Now I think that it would be best for life on Earth if we ceased to exist as a species.

  38. Davy Projecting Again on Sun, 4th Aug 2019 8:58 pm 

    Juan, are we going clubbing tonight? Please wear those tight white pants. I don’t mind your gut hanging out a little. Little ebony is fine

  39. Davy Projecting Again on Sun, 4th Aug 2019 9:01 pm 

    Well, looks like the board moderators will have to stop the show again because Davy cannot play by the rules.
    He is given opportunity after opportunity to redeem himself, yet his darkside always wins. For this reason, as the designated Peak Oil Ombudsman, it’s incumbent upon me to aggressively moderate and neuter his naturally reflexive extremism, lies, hypocrisy, and personal vindictiveness.
    Yes, I have a difficult job to perform, but someone must step forward. I shall remain vigilant 24 hours a day, 7 days a week, and 365 days a year. I accepted this position and I refuse to let the readers of this site down.

  40. Davy Projecting Again on Sun, 4th Aug 2019 9:02 pm 

    It sounds like you’re still upset with me for cumming in your mouth.

  41. Davy on Sun, 4th Aug 2019 9:56 pm 

    You promised me you wouldn’t Juan.

  42. JuanP on Sun, 4th Aug 2019 9:58 pm 

    Promises are made to be broken Davy.

    Suck it up buttercup.

  43. Davy on Sun, 4th Aug 2019 10:27 pm 

    I WANT MY MOMMY!

  44. JuanP on Sun, 4th Aug 2019 10:29 pm 

    Good idea Davy. Maybe she’ll teach you how to STFU and swallow, you ungrateful widdle wussy.

  45. Davy on Mon, 5th Aug 2019 12:17 am 

    I still have feelings for you Juan. I can’t help myself.

  46. JuanP on Mon, 5th Aug 2019 12:19 am 

    Move on Davy. It’s over.

  47. Davy on Mon, 5th Aug 2019 12:37 am 

    But Juan? You mean everything to me.

  48. JuanP on Mon, 5th Aug 2019 12:42 am 

    I’ve filed for a restraining order Davy.

    Move on, it’s over. Find someone else.

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