2017 will be punctuated by OPEC production cuts and its impact in the oil market. Some of the consequences are already visible for instance in floating storage. Just before OPEC agreement on November 30, floating storage attained record levels in several regions. We were showing 100 million barrels of mid-long term floating storage in 6 key zones (Iran, North West Europe, Singapore, Malacca Strait, China and USGC). That figure dropped to 73 million barrels in one month.
- Iran and Singapore reported the largest drops passing from 60 million barrels on November 29 to 37 million barrels currently.
- Floating volumes in US Gulf Coast and China evolved in the opposite direction, passing from 14 million barrels to 20 million barrels in the same date frame.
OPEC cuts could be offset in part by the growing exports in several countries. In particular, Libya will play an important role. Our data shows that Libya exported 623 kbd of crude in December (+12.6% month-to-month) with new barrels coming from reopened ports such as Zueitina, Ras Lanuf and Es Sider.
US gulf coast floating storage
As mentioned in the floating storage section, the number of vessels sitting loaded in US gulf coast for more than 10 days has increased in the last part of the year. Over 10 million barrels of crude have been waiting for at least 10 days in Corpus Christi,Galveston offshore and close to Houston port.