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Friday, 25 November 2016

Russia cements leading China oil supply position | Reuters

Russia cements leading China oil supply position | Reuters:
"Russia is cementing its position as the main oil supplier to China, the world's biggest net importer and growth market for the fuel, taking over the lead from Saudi Arabia in the first 10 months of the year, customs data showed on Friday.

Russia also took the monthly lead back from Angola, which briefly had top supply spot to China in September, the data showed.

Chinese crude oil imports from Russia in October climbed 39 percent on a year earlier to 1.12 million barrels per day (bpd), making it the biggest supplier. That also left it the largest supplier over the first 10 months of the year, totaling around 1.03 million bpd in that period, customs data showed.

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For OPEC’s Rivals, Success Lies in Oil Market Far, Far Away - Bloomberg

For OPEC’s Rivals, Success Lies in Oil Market Far, Far Away - Bloomberg:
"Rivals of OPEC seeking to reach its most-prized oil customers are finding that the long way around is better than any shortcut to success.
As the group seeks to implement a deal to limit output, the glut that was exacerbated by its prior strategy of keeping taps open has spawned a market structure that’s benefiting competitors in sales to Asia. Cargoes from Europe’s North Sea will reach South Korea in coming months, while U.S. Eagle Ford shale crude as well as Mexican oil arrived at Yeosu port in November. Japanese and Thai refiners have bought West Texas Intermediate from BP Plc.
Shipments to Asia from locations farther than the Middle East are turning more attractive because of a deepening market structure known as contango, where near-term supplies are cheaper than those for future months. Sellers benefit from this because the value of a cargo rises as it makes the longer journey to its destination. For buyers, abundant output across the Atlantic Basin has made North American and European oil cheaper relative to crude from OPEC nations such as the U.A.E and Qatar."

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Export credit enlisted to keep Gulf mega projects funded: sources | Reuters

Export credit enlisted to keep Gulf mega projects funded: sources | Reuters:
"Gulf governments are increasingly turning to export credit agencies (ECAs) to finance billions of dollars of infrastructure projects as low oil prices squeeze liquidity in the region.

Bankers say that since oil prices fell more than two years ago, eroding state revenues and drying up funding from local and international banks, borrowers are considering ECA finance for everything from airports to oil refinery expansion.

The extent of its use in the future is difficult to predict, but at least a portion of the estimated $2 trillion of projects planned in the Gulf Cooperation Council are likely to require ECA involvement."

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Saudi Aramco to supply more oil to Asia in January: sources | Reuters

Saudi Aramco to supply more oil to Asia in January: sources | Reuters:
"State oil giant Saudi Aramco has agreed to supply some customers in Asia with incremental crude that will load in January, as it holds to a strategy of maintaining market share, three sources with knowledge of the matter said on Friday.

The decision by the world's top exporter to give extra oil came weeks before Saudi Aramco was due to notify customers of their monthly supply allocation. For January supplies, allocations would have been made only around Jan. 10.

By exercising flexibility to meet customers' demand, Saudi Arabia is signaling that it won't budge on market share even as it works with members of the Organization of Petroleum Exporting Countries to finalize plans for a production cut at their Nov. 30 meeting, the sources said."

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