{"id":22970,"date":"2017-02-24T14:20:09","date_gmt":"2017-02-24T19:20:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22970"},"modified":"2017-02-24T14:20:09","modified_gmt":"2017-02-24T19:20:09","slug":"chinese-import-data-suggests-opec-is-lying-about-a-production-cut","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22970","title":{"rendered":"Chinese Import Data Suggests OPEC Is Lying About A Production Cut"},"content":{"rendered":"

Chinese Import Data Suggests OPEC Is Lying About A Production Cut<\/a><\/h3>\n
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To those cynics who accuse the self-monitoring OPEC, and its various adjunct agencies, of lying that it has implemented last year’s agreed upon production cuts, China just released January crude import data, which validates this skepticism.<\/p>\n

As JPMorgan writes, while IEA estimated the OPEC crude oil production fell by 1mbd to 32.06mbd in January, suggesting an initial compliance of 90% with the output agreement reached end 2016,\u00a0the latest oil supply details released by China customs today suggest a reduction of supplies was not yet seen by China, the world\u2019s largest oil importer.\u00a0<\/strong><\/p>\n

In fact, quite the contrary: crude oil shipments from the 11 OPEC nations committed to a 1.2mbd output cut increased by 28% yoy, and more importantly,\u00a0rose 4% from December 2016\u00a0– in a time when production was supposed to be declining – to 4.6mbd in January, accounting for 57% of China\u2019s total oil imports.\u00a0<\/strong><\/p>\n

Ironically, if anyone was cutting it was the non-OPEC nations, mostly Russia, who foolishly assumed that Saudi Arabia\u00a0et al\u00a0<\/em>would be true to their word: non-OPEC countries led by Russia that also agreed to a cut boosted their January supplies to China by 40% yoy,\u00a0but saw a 10% drop sequentially,\u00a0<\/strong>in line contractual expectations. Comparing January 2017 levels with the 2016 average, China\u2019s crude oil imports from the committed OPEC and non-OPEC producers gained 6%\/13% respectively, while the country\u2019s total oil imports gained 5%.<\/p>\n

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\u00a0Some details:<\/div>\n
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  • Saudi, Angola and Iran lead OPEC supply growth to China.\u00a0<\/strong>According to the China Customs\u2019 buy country oil supply data,\u00a0Saudi Arabia boosted shipments to China by 19% yoy and 41% mom to 1.19mbd in January (16% growth versus the 2016 average<\/strong>). Imports from Angola increased by 63% yoy and 46%\u00a0mom to 1.17 mbd\u00a0<\/strong>last month (33% higher than 2016 average), while volumes from Iraq jumped by 43% yoy\u00a0 and\u00a012% mom\u00a0<\/strong>to 0.83mbd (14% higher than 2016 average).<\/li>\n<\/ul>\n

    …click on the above link to read the rest of the article…<\/p>\n

     <\/p>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

    Chinese Import Data Suggests OPEC Is Lying About A Production Cut To those cynics who accuse the self-monitoring OPEC, and its various adjunct agencies, of lying that it has implemented last year’s agreed upon production cuts, China just released January crude import data, which validates this skepticism. As JPMorgan writes, while IEA estimated the OPEC […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[130,14893,595,600],"class_list":["post-22970","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-china","tag-crude-oil-data","tag-oil-production","tag-opec"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22970"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22970\/revisions"}],"predecessor-version":[{"id":22971,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22970\/revisions\/22971"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}