World’s top three oil exporters add tightness to global market in March – Vortexa

Oil exports from Saudi Arabia, Russia, and the US lowered in March, adding supply tightness to the global market, says Vortexa's head of market intelligence and analysis Jay Maroo.

PHOTO: A large oil refinery. Getty Images

Oil (crude and refined products) exports from Saudi Arabia and Russia have each declined by over 400,000 b/d month-on-month in March. Oil exports from the US have also dropped by around 100,000 b/d during this month, Maroo said in a research note.

"In total, this means the big three’s combined seaborne crude/condensate exports fell by around 1mbd m-o-m (1 million b/d month-on-month) to 13.7mbd (13.7 million b/d), as of March 25."

This decline in global exports can partly be attributed to the ongoing global geopolitical conflicts as well as OPEC+'s extended supply cuts until June-end.

The recent attacks on Russian energy facilities by Ukrainian drones have disrupted the country’s crude refining capacity and added pressure on fuel markets, ANZ Bank’s senior commodity strategist Daniel Hynes remarked. About 12% of Russia’s total oil processing capacity has been impacted as a result, he added.

Extensive damage to Russia's oil processing facilities could allow more crude exports from the country. "However, in the current environment of tightening restrictions on freight/sanctions compliance there may be difficulties in maintaining exports at current levels (around 3 million b/d)," Vortexa's Maroo said in the research note.

Meanwhile, non-OPEC suppliers including Brazil and Guyana have increased crude oil exports in recent months. “Be it crude or products, the big three’s exports are facing increasing competition," he added.

By Aparupa Mazumder 

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