Todd Bishop
Saudi Arabia, the largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), maintained its average daily oil production below 10 million barrels in June this year, or its exports fell month by month.
According to the Joint Organization Data Initiative (JODI) data, Saudi Arabia’s average daily crude oil exports in June were 6.721 million barrels, down from 6.942 million barrels in May, while the average daily output in June was 97.8 million barrels, compared to the May day. The average output was 9.67 million barrels.
JODI’s data also shows that Saudi Arabia’s crude oil inventories in June was 187.9 million barrels, an increase of about 0.9%.
The agency’s data also showed that Saudi Arabia’s average daily demand for refined oil in June was 2.381 million barrels, higher than the 2.092 million barrels in May.
US crude oil inventories fell by 3.1 million barrels last week
On the other hand, the US Energy Information Administration will announce crude oil inventories last week on Wednesday. Market participants expect local crude oil inventories to be reduced by 3.1 million barrels, while gasoline and refined oil inventories will be reduced by 1.6 million barrels and 200,000 barrels, respectively.
Schneider Electric senior analyst Robbie Fraser pointed out that the oil price will be affected by the US inventory data in the next 2 days, and the inventory data released in the last two weeks will rise. If the data to be released will turn from rising to falling, it will support the oil price.
However, the price difference between New York oil and Brent oil has narrowed, or stimulated the increase in imports, when the crude oil inventory data fell less than expected.
