Daily Energy Report
Saudis confirmed, Egypt LNG importer, Chevron megadeal, More Russia sanctions, Slovakia bribed, EU nuclear, Asia gas buying, NY offshore wind, US solar/wind scrutiny, Rebel rare earths, and more.
July 18, 2025
Chart of the Day
EOA: Inventories at Sidi Kerir and Exports from the West Confirm Saudi Claims
Summary
Bloomberg reports criticized Saudi Arabia for exceeding its June production quota by about 350 kb/d, ignoring its voluntary cuts of one million barrels per day below quota for months in 2023 and 2024. The reports overlooked Saudi explanations and their prudent move to shift oil from danger zones during the Israeli-Iranian conflict to prevent disruptions.
Saudi Arabia saids that the production increase ensured adequate supplies during the war, with excess oil sent to storage. As the war lasted only 12 days, the oil was not used. Our investigation confirms increased exports from western ports, indicating Aramco boosted East-West pipeline flows, moving oil from potential danger zones to safer western areas, then shipping it to Egypt for storage. Figure 1 shows increased Sidi Kerir storage in late June, consistent with oil movement during the war starting June 13, with a 2–3 day delivery to Egypt.