Saudi Arabian Oil Exports to China Surge 76% in October

Saudi Arabian oil exports in China increased by 76.3% in October, improved by demand from new refiners. Also, the kingdom is maintaining its position as the top supplier to China.

Saudi shipments rose up to 8.41 million tons or 1.98 million barrels per day versus the 1.74 million bpd in September.

Zhejiang Petrochemical in the South and Hengli Petrochemical Co in the North supported crude deliveries from Saudi.

The effects of a drone and missile attack on Saudi oil-processing plants did not limit October oil flows. Besides, Saudi Aramco took on inventories to keep supplies to consumers.

Analysts from the Refinitiv Oil Research team anticipate the supply turmoil in Saudi may begin to show in cargo deliveries in November.

Chinese customs did not give a figure for Venezuelan crude imports, but analysts expect the counts to have fallen to zero last month. Buyers stopped purchasing oil from the South American exporter amid embargo imposed by the U.S.

Imports from Iran fixed at 532,790 tons in October, just below 538,878 tons in September despite tensions between Washington and Tehran.

China’s Malaysian crude imports in October reached 1.95 million tons.

According to senior oil analyst, shipments from Malaysia are usually a mixture of Venezuelan, Iranian, and other grades.

Malaysian arrivals to achieve a record as a result of U.S. sanctions on exports of Iranian and Venezuelan crude.

Imports of U.S. crude in October gained 908,422 tons, up from 517,982 tons in September.

Arrivals of Russian crude increased to 6.97 million tons from 6.31 million tons in the previous month.

Saudi Arabian Oil Boost on U.S.-China Trade Talks Optimism

Saudi Arabian oil increased as positive comments from the U.S. and China renewed hopes in global markets on the signing of the deal to end the trade war.

West Texas Intermediate crude oil increased 26 cents or 0.45% to $58.03. It ended last week with little change after tracking the trade talks through ups and downs.

Monday’s higher opening prices came after U.S. national security adviser said an initial trade deal with China is still feasible.

The news came after U.S. President Trump and Chinese President Jinping showed a desire to interim an initial trade deal and defuse the tariff war that lowered global growth. Also, Trump said he had yet to decide whether he wanted to finalize a deal, while Jinping said he is not afraid to retaliate when necessary.

Brent crude futures settled at $63.73, increased 34 cents or 0.54%. Also, the oil benchmark finished a bit of change last week.

China’s foreign ministry hopes the U.S. will work with Beijing based on quality and mutual respect on the trade negotiations.

Moreover, a move by China to protect IP was also providing a supportive atmosphere for the trade talks.

U.S. national security adviser warned that Washington will not be blind to what happens in Hong Kong. Demonstrators were angry about the erosion of freedoms pledged to the ex-British colony when it returned to Chinese rule 20 years ago.

The OPEC meets on Dec. 5 in Vienna, followed by talks with OPEC+, led by Russia. Prices could increase if OPEC+ agrees to extend its supply cut by three more months to mid-2020.