Crude oil spot prices have fallen so far on Thursday, following
yesterday’s climb to a six-week high.
West Texas crude oil futures have fallen 0.87% to below $47 per barrel so far Thursday, after climbing to a
six-week high Wednesday on better-than-expected U.S. inventory data.
and 0.20%, respectively. Meanwhile the Energy Select Sector SPDR (XLE) has climbed 0.18%.
Speculation that Saudi Arabia will consider cutting exports by one million barrels per day should
be taken with a grain of salt, says RBC Capital Markets‘ Michael Tran. In a report he published today he said:
The upcoming shutdown of the 900 kb/d Manifa field to address a technical issue helped to fuel the headlines. While there is no shortage of headline noise that we know to be true is that the Saudis are making good on their pledge to reduce exports to visible regions. Saudi crude shipments to the US averaged over 1.2 mb/d this year leading up to the late May OPEC meeting, which compares to 820 kb/d in subsequent weeks. The latest print saw exports to the US flirt with near all-time lows of 524 kb/d. The shift in Saudi export policy has paved the road for US stock draws, but exports are being funneled elsewhere given that notional Saudi exports remain in line with levels seen throughout the year.