13 December 2024: 09:30 GMT
Chinese crude buying is back big time. Following the earlier fifth quota for 58 mil bbls, Saudi allocations also jumped by close to 10 million bbls! Fasten your seat belts, this baby is going for a ride! The previous Saudi Cyber Monday OSP price cut worked its magic and now everyone wants more Saudi crude! The 80c reduction brought the customers in mass and they asked for even bigger volumes than allocated. The Saudis got some love back from China and allocations were upped. But the UAE cut supplies to Asia! Saudi December allocations fell way down to 36.5 mil bbls, but they surged to 46 mil bbls for January. As usual, Rongsheng’s going to be rolling in it with the biggest allocation, 16 mil bbls, while Unipec and PetroChina also got allocation bumps. Shandong got an allocation, 2 mil bbls, the first since September. But some were disappointed and wanted more. Sources say Unipec asked for 14 mil bbls but only got 8 mil! That’s a big difference.💔 We also heard other physical barrels are moving; our sources say WAF is flowing and the overhang went down from 100+ mil bbls to around 70 mil bbls. So, things look bullish as they do when people buy more than they were.
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