[size=36]Bloomberg: Saudi oil targets China at the expense of America[/size]
Saudi oil shipments are increasingly going to China, at the expense of the US share in part, the Bloomberg news agency reported .
The signals from oil tankers last month indicate that Saudi Arabia is sending ever more of its crude oil to China, causing a loss to the United States. Saudi Arabia's exports to China rose to 1.74 million bpd in July, The highest since Bloomberg began tracking cargo data in January 2017. Meanwhile, Saudi shipments to the United States seem to have dropped to 161,000 barrels a day, the lowest for the same period.
The difference illustrates the current state of the impact of the policy sites, where the Organization of Petroleum Exporting Countries (OPEC) - Saudi Arabia is one of the largest producers in the Organization - and a group of allies last month to extend the cut production. The main reason for the restrictions is the rise in production in the United States, which is approaching record levels in the weekly data. US stocks have fallen in recent months as Saudi shipments to the country drop.
At the same time, Saudi Arabia has acquired a large slice of the Chinese market at the expense of Iran, which has crippled US oil exports, the kingdom's regional rival. According to the tracking data, Saudi crude oil flows to markets east of the Suez Canal were around 5.1 million bpd last month, and the number is likely to rise when some ships reach their final destinations. Saudi Arabian Gulf flows seem to have fallen to around 1.1 million bpd in July.
China imported a record amount of crude oil from Saudi Arabia in June, according to the General Administration of Customs. The country has an increasing desire for raw materials, with two projects being run by Hengli Petrochemicals and Zhejiang Petrochemicals Co. this year. The Hengli plant in Dalian reached full capacity in May.
With China grabbing more Saudi crude, flows to India, Japan and South Korea appear to have declined last month. Only three vessels carrying oil from Saudi Arabia to the United States sailed in July - one for each of the eastern, western and Gulf coasts - although more ships may appear in the coming days when the tankers arrive at their final destinations. US-related flows fell to 1.03 million bpd in July 2018.
Of the crude oil-laden vessels in Saudi Arabia in July, the ships' carrying capacity of about 13 million barrels was not disclosed. According to the tracking signals, it is likely that about half of this amount will sail east