US imports from Saudi Arabia of crude oil in thousand bbls per day. Most current data, October, 2020, as released by EIA:
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Saudi Arabia Foreign Exchange Reserves
November, 2020, data:
- total overseas reserves: increased by 2.3%;
- 1.71 trillion riyals [works out to about $462 billion?]
- November over October: 38.7 billion riyals
We'll see the numbers at this site later this month.
The natural market for ME oil is Asia. Just based on shipping patterns and costs. They are both "East of Suez". Really, US imports of SA oil would probably be zero were it not for Motiva and/or political/cartel dynamics.
ReplyDeleteThat's true now but it wasn't true in 1980. I'm not sure it was even true in 2000. OPEC pretty much controlled everything until the last ten years or so. And the US west coast, without Alaska, is definitely a market for the Mideast. Saudi was very, very interested in the US when oil was $100/bbl -- so, for me, at least, the concept of "natural" markets -- when it comes to commodities -- leaves me wondering.
DeleteTo take the argument to its ridiculous extreme, suppose US shale is shut down completely within the next four years: would the US look appealing to Saudi once again? Would the US become a "natural" market for Saudi Arabia once again?
Agreed on Pacific markets.
ReplyDeleteOf course, I still think people make way too much hay out of country A selling to country B. Something very fluid (pun intended) since ships can move around. What really matters is total production and total consumption. Shipping patterns will work themselves out.
I agree completely. You said it much better than I did. Thank you. Much appreciated. A couple years ago I remember the number of cargo ships lined up for miles in one or two long lines leading to the Los Angeles and Long Beach ports -- my hunch more money was lost due to waiting time than transit costs.
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