Daily Energy Report
Daily Energy Report
China’s oil inventories, Aramco’s oil production capacity, Aramco sees robust oil demand, Diesel supply tight in Europe, US solar production vs China, Diamondback/Endeavor Deal, and more
Chart of the Day: China’s Oil Inventories Declined as Oil Prices Rose
Summary
Figure (1) above shows trends in China’s oil inventories since the beginning of 2023. It shows a noticeable decline in recent weeks.
EOA’s Main Takeaways
A prediction made a few years earlier works like a Swiss clock: Every time Brent oil prices increase above $75, China reduces its oil imports and uses its inventories that it bought at lower prices weeks or months earlier!
Story of the Day
Bloomberg: Aramco’s Capacity Halt is Due to Energy Shift, Minister Says
Summary
Saudi Aramco has paused its planned output expansion due to the global shift towards alternative energy sources, as stated by Saudi Energy Minister Prince Abdulaziz. Saudi Arabia is adapting its strategy to maintain stable energy markets. Aramco’s CEO, however, does not see a demand peak soon. Saudi Arabia's current oil production includes a sizable surplus capacity.