OPEC Exports to Drop as Saudi Arabia Trims, Oil Movements Says
By Lananh Nguyen
The Organization of Petroleum Exporting Countries will reduce crude shipments through early next month as Saudi Arabia reduces exports, according to data from Oil Movements.
OPEC, which supplies about 40 percent of the world’s oil, will reduce sailings by 110,000 barrels a day, or 0.5 percent, to 23.8 million barrels in the four weeks to Nov. 9, the tanker tracker said today in a report. That compares with 23.91 million in the period to Oct. 12. The figures exclude two of OPEC’s 12 members, Angola and Ecuador.
“The Saudis are actually starting to go down,” Roy Mason, the company’s founder, said by phone from Halifax, England. If OPEC exports and oil demand remain at current levels, “by Christmas, you’re looking potentially at six months of serious surplus,” he said.
Refinery processing rates typically decline at the end of the third quarter as plants perform maintenance before preparing to meet higher demand for heating fuel during the northern hemisphere winter.
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