Daily Energy Report
Daily Energy Report
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Chart of the Day: Saudi Oil Exports from the West at a Record High!
Summary
Figure (1) above shows Saudi Arabia’s total oil exports (crude and products) from the west on the Red Sea. Kpler data shows that these exports have been increasing in recent weeks and reached a record high at 2.4 million barrels a day. About 62% of these exports are crude that has been shipped via pipelines from the eastern province, and about 27% are diesel and gasoil, which is badly needed these days. Gasoline exports more than doubled in recent weeks.
EOA’s Main Takeaway
Although Saudi Arabia kept its commitment to maintain the voluntary cuts and production around 9 mb/d, it did help the world by shifting some of its exports from the Gulf to the Red Sea, while providing additional diesel and gasoil at a time of short supplies. While total exports were at a record high, crude was not, but diesel and gasoline exports were at a record high. Most of the crude went to Ain Al Sukhna, in Egypt, where it was shipped via pipeline to Sidi Kerir on the Mediterranean coast of Egypt. From there, it is loaded on tankers. Most petroleum products went to Ain Al Sukhna too, but direct shipments went to several European countries including Belgium, France, Italy, and the Netherlands. Some went to Jordan.
Our readers are familiar with our writings about the role of Sidi Kerir plays in shipping Saudi crude. Our latest coverage covered historic low levels of inventories. With the increase in Saudi exports, inventories started rising. Exports from Sidi Kerir have been increasing the last three months. Most exports went to France, Italy, the Netherlands, Poland, Spain, France, Turkey, and the US.
Here are some musings:
Saudi crude travels through two pipelines, one through Saudi Arabia from east to west, and one through the SUMED pipeline from Ain Al Sukhna in Egypt at the mouth of the Suze Canal to Sidi Kerir near Alexandria on the Mediterranean.
The east-west pipelines in Saudi Arabia were built to be used in case of problems in the Hormuz Strait. Who would have thought these pipelines would do wonders because of problems in Bab El Mandeb?