Nikkei managed to break the losing streak Oil declines for the second session in a row

Nikkei managed to break the losing streak Oil declines for the second session in a row: Positive morale continues to dominate global markets.

Major Asian indices are growing steadily, reflecting improvements in U.S. market dynamics,

as well as reports of U.S. and Chinese presidents preparing for online negotiations by the end of the year.

Commodity markets only appear to be off-schedule in anticipation of a long weekend in the People’s Republic of China,

as well as the publication of data on unemployment and the number of new jobs in the United States on Friday

statistics may highlight concerns that they are shrinking again, as well as the Fed’s stimulus.

Evest follows all this in the following report:

Topics:

Democratic-Republican budget agreement

Stock indices are rising on Wall Street

McConnell proposes an emergency increase in the national debt limit

Nikkei breaks a declining streak for 8 sessions to rise

Oil is under strong selling pressure

Democratic-Republican budget agreement

Democrats and Republicans in the US Senate have finally reached a compromise on the national debt.

Support was provided to global markets through the news about progress in solving the problem of raising public debt,

and approving the United States budget for the fiscal year 2022.

Republican representatives in the Senate agreed to temporarily raise the national debt ceiling for two months,

to provide the amount needed to cover operating costs. Thus,

the administration of United States President Biden will have time to agree on core budgetary standards and avoid a technical default.

Stock indices are rising on Wall Street

In the United States, the stock indices rose by 0.3-0.5٪ at the close of trading on Wednesday.

The indices started the session in the negative zone with growing concerns of accelerated inflation in conjunction with rising oil prices,

uncertainty about the situation under the national debt limit,

as well as expectations of an imminent reduction in the asset buyback program by the Federal Reserve System (FRS).

McConnell proposes an emergency increase in the national debt limit

US President Joe Biden announced an urgent need to raise the US national debt limit during a meeting at the White House with representatives of major banks and corporations on Wednesday.

Congress needs to approve an increase in the US government’s debt limit until October 18 – the “deadline” date in the words of US Treasury Secretary Janet Yellen.

Yellen also reiterated, during Wednesday’s White House meeting, that after October 18, her administration will run out of money.

The US stock market was also supported on Wednesday by Senate Minority Leader Mitch McConnell’s proposal for a short-term solution to the problem.

McConnell said Republicans will allow Democrats to implement “an emergency increase in the national debt limit by a steady amount covering government spending” through routine action before the December deadline.

Republicans refrained from approving a bill to raise the public debt ceiling earlier and insisted that Democrats planning such large expenditures should be fully responsible.

The ADP industry report also became positive for the US stock market on Wednesday,

showing a 568 thousand increase in the US private sector’s jobs in September against Wall Street expectations of 425 thousand.

Official US Labor Market data for September will be released on Friday.

Analysts predict an average increase in US jobs of 500 thousand and a decrease in unemployment to 5.1% from 5.2%.

September’s employment growth is likely to be enough for the Fed to begin phasing out the asset buyback program this year, experts say.

Nikkei breaks a declining streak for 8 sessions to rise

Stocks also rebounded on Thursday in Asia, where Japan’s Nikkei Index rose by 0.5% after declining eight consecutive sessions,

Hong Kong’s Hang Seng Index rose by 2.8%,

mainland China exchanges closed this week on the day of the formation of the People’s Republic of China),

as well as US stock futures (the future for the S&P 500 index rose by 0.6%).

Stocks in Chinese real estate developer China Estates Holdings,

one of the major shareholders in the heavily indebted China Evergrande Group,

rose by more than 30% on Thursday against the backdrop of the company receiving a sale offer from Solar Bright Ltd,

where the developer valued at 91.1 billion Chinese yuan ($245.3 million).

Oil is under strong selling pressure

In the oil market, prices remained under selling pressure on Thursday morning after declining by almost 2% the previous day amid rising US inventories,

as well as falling gas prices against Russia’s promises to increase supplies to Europe.

Brent crude futures’ cost for November was $80.75 per barrel (-0.4% and + -1.8% on Wednesday),

and West Texas Intermediate crude price for November was $76.66 per barrel (-1٪ and -1 ، 9% the previous day).

According to the United States Department of Energy,

the United States commercial oil reserve rose by 2.35 million barrels last week to 420.89 million barrels.

Experts interviewed by Bloomberg predicted inventories to rise by million barrels, according to Standard & Poor’s Global Platts poll – by 200 thousand barrels.

Inventories at the Cushing terminal, where oil traded on the NYMEX stock exchange, rose by 1.5 million barrels last week.

Gasoline inventories in the United States rose by 3.26 million barrels last week and distillates fell by 396 thousand barrels.

Analysts predicted gasoline inventories to increase by 400 thousand barrels and distillate inventories to fall by 750 thousand barrels.

According to Bloomberg, at least one technical index has suggested that oil prices could decline this week.

The Relative Strength Index (RSI, for 14 days) of West Texas Intermediate crude,

which measures how fast prices rise or fall, rose to 70 points on Monday, indicating that the market is at its peak sale.

Hints of ending QE program hitting Wall Street and rising inventories pressure on oil

Hints of ending QE program hitting Wall Street and rising inventories pressure on oil :It’s not usual for September to be the strongest for the US stock market.

The statistics published and the situation with the public debt “ceiling” do not contribute to an increased level of investment optimism.

The Converse Broad consumer confidence index fell for the third month in a row in September.

Gas prices set records, but these prices will contribute even more to rising inflationary pressures.

In September, the number of recipients of $2000 in checks in the US fell dramatically, but some of that money stemmed from the growth of the US stock market.

Evest follows all this and more in the following report:

topics:

Hints of ending QE program

Record declines on Wall Street

Oil inventories are rising sharply

Chinese authorities are interfering with the Evergrande crisis

Decline in Asian markets

Hints of ending QE program

The resounding remarks of FRS representatives had the effect of causing tension in the markets.

The chairman of the Federal Reserve Bank of St. Louis said the Fed must act more effectively to tackle inflation.

He did not rule out the possibility of two base rate increases in 2022.

The Chairman of the United States Federal Reserve, Powell, announced the Fed’s willingness to end its quantitative easing program.

A tighter monetary policy would hurt tech stocks the most.

The United States Department of the Treasury will be able to meet its financial obligations without raising the US national debt limit until around October 18,

and therefore, this situation will gradually escalate.

US Treasury Secretary Janet Yellen said that if the debt limit was not resolved, America would default for the first time in history.

The full confidence and creditworthiness of the United States will fade, and the country is likely to face a financial crisis and economic recession.

However, according to experts, Republicans do not want to cooperate,

and this will have a negative impact on the situation in the stock markets in the coming days.

The Chairman of the Federal Reserve Board of the Banking Committee reiterated his willingness to close the stimulus program soon,

contributing to the dollar rising to its highest level since November 2020. The strong dollar was a reason to fix profits, for the commodity speculators.

Record declines on Wall Street

US stock indices declined 1.6-2.8% on Tuesday, the Nasdaq fell by -2.8%, the highest since March 18,

and the Dow Jones (-1.6%) fell for the first time in five trading sessions.

Maximizing the yield on government bonds since June negatively affects the stock market (the yield on the 10-year terrestrial reservoirs exceeded 1.5% annually),

as well as the growth in the cost of energy resources.

US Treasury Secretary Janet Yellen said her department’s funds could run out by October 18 if Congress does not increase the borrowing limit.

Federal Reserve Chairman Jerome Powell said the regulator met almost all the criteria for starting a rollback of stimulus procedures.

He said that inflation in the United States is likely to continue rising in the coming months, but then slow down.

The Chairman of the Federal Reserve Board said that rising inflation,

caused by problems in supply chains and other factors associated with the recovery of economic activity

after the Coronavirus pandemic, turned out to be longer and more important than expected.

Oil inventories are rising sharply

Oil prices continue to decline on Wednesday morning amid renewed concerns about the pace of global economic recovery under the Coronavirus pandemic after oil inventories increased.

On the eve of Brent crude price, its price rose to $80.75 per barrel – the highest level in 3 years.

The statistics of the American Petroleum Institute added a slightly negative sentiment,

showing an increase in crude oil inventories by 4.1 million barrels, and gasoline – by 3.6 million barrels,

and distillates products – by 2.5 million barrels.

If statistics from the United States Department of Energy were released on Wednesday, another reason for the decline in oil would appear.

Also negative for raw materials is the reduction of the Chinese economy’s outlook for this year from leading banks because of risks in the real estate sector and the energy crisis.

As oil is in the peak purchasing zone, the deadlock may continue to decline, although the $75 per barrel support for Brent crude remains appropriate.

Chinese authorities are interfering with the Evergrande crisis

Chinese authorities intervened to help Evergrande and bought 20% of its stocks in Chengjiang Regional Bank for 10 billion yuan ($1.55 billion). However, t

he troubled developer’s creditors are not likely to receive these funds.

One of China’s biggest real estate developers, China Evergrande, which faced debt problems and low liquidity,

announced that it would sell Chengjiang Bank stocks to the State Administration Corporation for $1.5 billion.

The company’s stocks ratio is 11.6%.

Decline in Asian markets

The negative dynamics of stock indexes also prevail in Asia on Wednesday, with Japan’s Nikkei index fell by 2.1%,

China’s Shanghai composite by 1.7%, and Hong Kong’s Hang Seng index rose by 0.6%.

Investors in the region are worried about a slowdown in the expected growth rate of the Chinese economy,

which is facing an energy crisis. Goldman Sachs economists expect China’s GDP to rise by 7.8% in 2021, down from 8.2% in previous projections.

Earlier, Nomura Bank and rating agency Fitch also cut their expectations for an increase in the Chinese economy.

The country’s energy supply crisis is associated with the fact that some regions of China are facing a real electricity shortage amid a sharp jump in the price of coal and natural gas,

while others are demanding that companies provide electricity in order for the government to achieve emissions reductions.

As a result, Chinese producers warned that strict requirements to reduce electricity use would lead to a decline in production in the country’s major economic centers.

On Wednesday, the People’s Bank of China (PBOC) the provided country’s banks with Part IX of the cash for 100 billion yuan

in reverse buyback to ensure adequate liquidity in the banking system.

The Central Bank of China said in a statement that the 14-day interest rate on transactions was 2.35% per year.

Investors are also watching the election of a new prime minister in Japan,

which will be held in the ruling Liberal Democratic Party on Wednesday.

Yesterday, the Associated Press reported that Japan would abolish the emergency regime introduced in connection with the Covid-19 pandemic as of October 1, and gradually lift the restrictions.

Inventories suddenly rise by 4 million barrels

Inventories suddenly rise by 4 million barrels: On Tuesday 28th September 2021 the American Petroleum Institute (API) declared a sudden rise in crude oil stockpiles by 4.127 million barrels for the week to September 24, contradicting analysts’ expectations for a decline of 2.333 million barrels for the week.

In the last week, the API declared a decline in stockpiles by 6.108 million barrels to exceed the 2.400 million barrels expected by analysts.

The data by the API shows that gasoline stockpiles also rose by 3.555 million barrels by the week ending September 24th compared with last week’s decline by 432.000 barrels.

Distillate stockpiles rose as well this week by more than 2.483 million barrels compared with last week drop by 2.720 million barrels.

Cushing reserves continued to accumulate by adding 0.359 million barrels to its stockpiles this week,
while it dropped in the last week by 1.748 million barrels.

Topics:

Oil prices for the week

Oil production weekly rates

Iran and Venezuela make oil swap deal

Sudan makes a deal with protests to export oil

Oil prices for the week

Oil prices fell on Tuesday before data publishing,

while the weekly reports indicate US inventories declining and market’s aspiration to a precise market in the future;

especially after Europe’s gas crisis which is expected to extend to other countries.

West Texas Intermediate crude fell 0.70% on Tuesday afternoon before data publishing.

At midday West Texas Intermediate was for 74.92$ a barrel, gaining 4.50$ throughout the week, but 0.53$ below Tuesday’s prices.

Brent crude fell 1.01% to 78.73$ a barrel.

US oil inventories cleaned out approximately 73 million barrels this year,
according to the API data (below pre-pandemic levels)

The latest data by Energy Information Administration EIA shows that US inventories are declining by 8% below the average of the five years for the same time of the year to 414 million barrels.

Oil production weekly rates

In the last two weeks, US oil production lowered by more than a million barrels,
but crude oil production rose 10.6 million barrels per day for the week to September 17th,

finally, more than 84% of oil producers resumed operations in the Gulf of Mexico after Ida’s arrival to shore by the end of August.

Iran and Venezuela make oil swap deal

Iran and Venezuela struck a deal to exchange heavy Venezuelan oil for Iranian condensate, Reuters reported.

According to the resources, oil exchanges begin this week and last for six months, to be extended when needed.

The Iranian crude oil imports will help Venezuela to revive its declining oil exports amid the American sanctions,

that prevented Venezuela from obtaining the light oil to be mixed with Venezuelan heavy oil to be exported.

According to Reuters’s resources, the deal will provide Iran with heavy crude that could be sold in Asia,

Venezuelan light oil could go to Asian buyers too.

Reuters mentioned that according to the United States department of treasury the deal violates the American sanctions against Iran and Venezuela.

The department of treasury in response to Reuters’s demand to comment replied that any dealings with the national Iranian oil company from non – American persons are subject to secondary sanctions,

it also added that it keeps its right to sanction anyone insisting on working in the oil sector of the Venezuelan economy.

Under such pressures, Venezuela managed to boost its exports and get vital revenues.

Venezuela, as the world’s biggest oil reserve, exported more than 700.000 barrels per day in July (the highest exporting rate since February),
according to a recent report by Reuters.

Most of it has gone to China and Malaysia, yet Malaysia is usually a station on the Venezuelan oil road to China.

The same report indicated that three of five oil blending installations in the Orinoco belt are working,

and another oil development is getting ready to resume operations after being suspended for a year.

Iran has revealed recently its plans to get 145 billion dollars from oil and gas investments domestically and internationally.

Sudan makes a deal with protests to export oil

Sudan’s government made a deal with protests to lift the Red sea surrounding, including the South Sudan oil-exporting center.

Reuters said that the domestic tribes are protesting bad economic conditions in the East of Sudan,

blocking roads and ports including a port shipping crude oil from South Sudan to international markets.

The deal between the government and rebels prevented an imminent crisis.

The oil minister warned that the oil-exporting station reserving capacity is about to end in only ten days,

and as a consequence oil production fields should stop production.

The non-coastal South of Sudan is the home for most of the old United Sudan oil reserves.

Despite most of these reserves not being utilized,

the country is producing more than 100.000 barrels per day to reach its highest level by 185.000 barrels per day at a previous time this year,

before its first licensing session ever.

At the present time, South of Sudan owns five producing blocks,

run by the Chinese national oil corporation, oil and gas Indian company, and Malaysian PETRONAS.

The oil ministry mentioned at a previous time,

that an oil licensing session aiming at attracting a diverse group of foreign investors

to an area is already including giant Chinese and Malaysian oil companies.

South Sudan separated from Sudan in 2011 to take with it 350.000 barrels of daily production,

recently after the civil war in South Sudan broke out in 2013, to hinder oil production.

In 2018 the warring factions in South Sudan signed the Khartoum agreement declaration,
and conflict parties declared a permanent ceasefire.

Both the Sudan and South Sudan governments searched for the possibilities of reconstructing the oil sector in South Sudan according to the South Sudan oil minister,
about 90% of its oil wealth is still undiscovered.

Evergrand’s problems are still disturbing the markets and positive week for oil and US indices

Evergrand’s problems are still disturbing the markets and positive week for oil and US indices: The situation in global markets has stabilized, in particular, US stock indices

. Having opened on Friday at a moderately low level, it later managed to post slight gains. In turn, after a domestic correction in the first half of Friday, oil prices also turned higher.

Evest follows all developments in the trading markets in the following report:

topics:

Oil is rising to record levels

Banks expect oil prices to rise

Evergrand’s problems don’t end

US monetary policy supports the dollar against the euro

Mixed dynamics in Asia and negative dynamics in Europe

positive week in Wall Street And Facebook and Tesla support the rise of the Dow Jones and Standard & Poor’s

Oil is rising to record levels

Oil prices boosted their growth in Friday’s trading.

The cost of Brent oil futures for November on the London Stock Exchange ICE Futures is $78.1 per barrel, $0.85 (1.1%) higher than the closing price on Thursday.

The price of Brent has not risen above $78 per barrel since October 2018.

West Texas Intermediate crude oil futures for November were traded in electronic trading for the New York Mercantile Exchange (NEMX) at a 10-week limit of $74.14 per barrel,
$0.84 (1.15%) higher than their value.

The market was supported this week, in particular, by data on last week’s decline in US oil inventories to its lowest level since 2018.

“In the short term, inventory levels in the United States and the world will support oil prices as they continue to fall rapidly,”

said Robbie Fraser, an analyst at Schneider Electric.

The number of oil platforms operating in the United States rose by 10 units last week, to 421platforms,

according to data from US oil field service company Baker Hughes released on Friday.

Currently, the operating facilities are 238 more than the previous year.

Banks expect oil prices to rise

Bloomberg wrote that a shortage of natural gas supplies in Europe could affect the entire energy complex in winter.

Goldman Sachs expects oil prices to rise to $90 per barrel.

In the meantime, Bank of America experts predict that oil production in the United States next year will increase by 800 thousand barrels per day.

In this case, the US will become the fastest-growing non-OPEC + oil producer, according to the Financial Times.

Bank of America said that the growth of production in the United States would affect the balance of supply and demand in the world market,
thereby alleviating experts’ concerns about potential supply shortages. But bank experts believe that even in the event of a rapid increase in US companies’ production,
this will not disrupt oil’s rally.

Evergrand’s problems don’t end

In the middle of Friday, global investors were pressured by the debt problems of one of China’s biggest developers,
Evergrand Group.

Hengda Real Estate’s main department paid interest on its domestic bonds on Thursday.

However, Western media reported that foreign Evergrande bondholders had not yet received their payments, totaling $83.5 million.

The developer can make payments later: The company has a grace period of 30 days default.

The main concern of the tradesmen is that if the company is still unable to make interest payments,
the foreign holders of Evergrand bonds will suffer losses.

This will raise questions about their financial viability and may lead them to start selling their other assets to raise funds.

US monetary policy supports the dollar against the euro

The US dollar has greater advantages over the single European currency through the differences in monetary policy approaches of the Federal Reserve and the European Central Bank,
which will contribute to its strengthening in the medium term.

The Fed is already preparing to end its quantitative easing program with the possibility of an increase in the key rate in 2022,
while the ECB may maintain a “super-soft” approach to monetary policy for a long time and as a European regulator,
Christine Lagarde said today, the recent rise in inflation in the eurozone was due to temporary factors and is expected to slow next year to 1.7%, so inflationary pressures in the European region are not the same.

Mixed dynamics in Asia and negative dynamics in Europe

On Friday, index dynamics in Asia were mixed, with Japan’s Nikkei index rose by 2.1%, China’s Shanghai Composite index fell by 0.8%,
and Hong Kong’s Hang Seng index losing 1.3%.

Indices in Europe were negative, with the FTSE, DAX and CAC 40 indices falling by 0.4-1٪.

positive week in Wall Street And Facebook and Tesla support the rise of the Dow Jones and Standard & Poor’s

The Dow Jones and Standard & Poor’s 500 indices rose on Friday and ended a tumultuous week with slight rises,
backed by gains from Tesla and Facebook, which offset Nike’s collapse.

Nike stocks declined 6.3 percent and were the biggest drag on the Dow Jones and Standard & Poor’s 500 indices after its pessimistic sales forecast and warning of delays during the holiday shopping season, blaming the supply chain crisis.

The stocks of footwear retailer Foot Locker Retailer have also fallen sharply.

On the other hand, Facebook rose 2 percent and Tesla rose 2.7 percent.

Standard & Poor’s telecommunications services sector jumped 0.7 percent and was the second-largest sector gain of the day after the energy sector, up 0.8 percent.

Stocks rebounded from sharp sales at the beginning of the week,
partly linked to concerns about Evergrand defaults and the risks it could pose to global financial markets.

The Dow Jones Industrial Index rose 33.18 points or 0.1 percent to 34798 points,
Standard & Poor’s rose 6.5 points or 0.15 percent to 4455.48 points, and the Nasdaq Combined declined 4.54 points or 0.03 percent to 15047.7.

Over the week, the Dow Jones index rose 0.62 percent, Standard & Poor’s rose 0.51 percent, and Nasdaq 0.02 percent.

Oil prices rise as US inventories decline

Oil prices rise as US inventories decline: on Tuesday 21st September 2021, the American Petroleum Institute (API) declared a decline in crude oil stockpiles by 6.0108 million barrels by the week ending September 17th, exceeding analysts’ expectations by 2.400 million barrels throughout the week.

Topics:

Oil prices for the week

Oil production weekly rates

Dubai’s gas tech conference report

Shell is off to the end of the year as an Ida’s consequence

Saudi Arabia remains China’s biggest oil supplier

Russia and Saudi Arabia are competing to export oil to China

Last Week

The API declared a decline in oil stockpiles by 5.437 million barrels for the last week,
while analysts’ expectations were 3.903 million barrels.

U.S. oil stockpiles lowered vastly in 2021, according to the API data it lowered by more than 76 million barrels, less than prior pandemic levels.

At the same time the latest data by Energy Information Administration (EIA) indicates that U.S oil reserves are less than 7%
than the average of the five years for the same time of the year to 417.4 million barrels.

The API declared a decline in gasoline stockpiles by 423.000 barrels for the week ending September 17th compared with last week’s decline by 2.761 million barrels.

Distillate stockpiles lowered by 2.720 million barrels this week compared with last week’s drop by 2.888 million barrels.

Cushing stockpiles dropped by 1.748 million barrels this week, while the last week drop was 1.345 million barrels.

Oil-prices-for-the-week

On Tuesday oil prices rose before data publishing, as U.S crude oil reserves weekly declined, and OPEC’s production was under market’s expectations,
also U.S. oil production lowered due to hurricane Ida. West Texas Intermediate crude rose 0.31% on Tuesday afternoon before data publishing.

At midday West Texas intermediate crude was for 70.51$, to rise 0.33$ in the week and 0.22$ throughout the day. Brent crude oil rose 0.70% at 74.44$ a barrel.

Oil production weekly rates

Lately, U.S oil production fell by more than a million barrels in the last two weeks,
to 10.1 million barrels by the week ending September 10th as hurricane Ida led to suspension of production in the Gulf of Mexico.

According to BSEE, 16.64% of GOM’s production is still offline up till now.

Dubai’s gas tech conference report

This week the world’s biggest gas traders and producers are meeting in Dubai to attend the Gas Tech conference;
this is the first face to face main action since Covid-19 struck.

According to world oil, the report mentioned that the conference is held from 21st to 23rd September at a time Europe faces a gas problem,
as gas prices are jumping to high levels.

Experts warned of electricity cuts in some countries by winter.
“We hope that winter in the northern half of the earth won’t be cold or we will face problems.” Didier Holt, French ENGIE’s deputy executive director said.

German UNIPER SE mentioned that risks in this industry credit are rising and many companies would find problems in cash.

Den Hollander, UNIPER’s commercial director, said that there wasn’t anything to say that Russia would suspend its gas supplies to Western Europe.

He also mentioned that, Russian PJSC Gazprom needed to renew its domestic market reserves
as this is one of the reasons why Russia wouldn’t be able to increase its exports.

Shell is off to the end of the year as an Ida’s consequence

Shell declared that an offshore platform run by the company would be off by the end of the year as a consequence of hurricane Ida,
as the platform got structural damages.

Shell also mentioned that another platform affected by Ida would be back to work by the end of the year.

Ida was one of the most destructive hurricanes lately, affecting gas and oil production in the Gulf of Mexico,
about 95% of oil production was off.
This week, after twenty days of Ida’s arrival to shore, more than 20% of production is still off.

According to the International Energy Agency (IEA) Ida caused cumulative losses in oil supplies reaching 30 million barrels,
to be the first decline in international oil supplies in five months and also international reserves declined sharply.

The US oil production fell from 11.5 million barrels per day to 10 million barrels per day after hurricane Ida struck the Gulf coast,

according to the EIA. After three weeks of Ida, about 40% of shell offshore production in the Gulf of Mexico is still off.

Saudi Arabia remains China’s biggest oil supplier

Official Chinese data reported by Reuters on Monday shows that Saudi’s crude oil exports to China rose to 53% yearly in August,
keeping its position as the main exporter to the world’s biggest oil importer for the ninth month in a row.

In the last month China’s crude oil imports from Saudi Arabia, the world’s biggest oil exporter,
rose by 53% compared with August’s 2020.To reach 1.96 million barrels,
according to Reuters’s data calculations by ton, of China’s customs general administration.

In the last few weeks the Chinese refineries began to raise their crude oil imports after a decline for months in buying oil from the spot market,
as Covid-19’s closure measures were one of the reasons why China’s oil buying from the spot market lowered.

There was another decline in importing shares due to governmental restrictions on private refineries.

Russia and Saudi Arabia are competing to export oil to China

Saudi Arabia beats Russia again to maintain the first position,
not only because the biggest oil producers in OPEC diminished their reductions,
but also China diminished its imports for private refineries in the third quarter.

Russian ESPO blend crude has a big fame in these refineries, known as “Teapots”.

Russia was the second biggest crude oil exporter to China.

Its exports rose by 12.6% throughout the year to 1.59 million barrels per day in August,
Russian exports didn’t change in the last month compared with the previous month’s 1.56 million barrels.

Last year, Saudi Arabia and its partner in OPEC Russia were competing for the first place as the biggest oil exporter to China,
the world’s biggest oil importer.