Saudi Arabia is famous as the world’s top crude oil exporter. And the country has a significant role to play whenever the oil rates across the rate go up or down. Since the last two years, the country has been cutting down the production and shipment of crude oil production after an order from OPEC. And it was successful in leading by example as well.
Every year the Saudis keep their production around the prescribed mark. In the last few months, it was 7 million BPD, which is within limits. It has helped the country to weigh down the price gain as well as prevent large oil gut again.
In this period, the country has reshuffled the preferred oil exporter countries depending on the priority. Owing to this step, China has emerged as SA’s top oil importer. It has boosted sales as well. Apart from those shipments to the United States of America got slashed. This report was out after reports from Chinese customs data, vessel tracking data and EIA estimates were out.
As the destination reshuffle and export volume took place, the oil-rich nation is now looking for different ways to increase the oil price. It is also looking for measures to reduce the oil export to the US, which is among the most transparently reported markets. Recent reports suggest that there has been a drastic drop in the shipping of oil to the US. There are also several short term targets so that the global inventories could drop to the prescribed average level. It would help in rebalancing the oil market.
Apart from that, the country also wishes to boost its oil sales to China. Coincidently, the communist country is notoriously famous for being opaque markets when they are asked to present the oil reports. Since the US has imposed several sanctions on another significant oil exporter country, which is Iran; therefore, SA is looking forward to taking advantage of this situation.