11 November 2024: 09:30 GMT
OMG, China is weak! China’s Saudi December allocations are down. What happened there, is demand down -IT US- or the Saudis prices are too juicy? Well, that too! Headline buyers and partners Rongsheng only bought full allocation and nothing extra. ‘We bought our full allocation,’ said a source. PC also disappointed with only two million bbls! This is bad.
Total allocations are a meagre 36.5 mill bbl, down from previous months. November’s allocation to Rongsheng was actually only 12 mill bbl, rather than the originally reported 14 mill bbl. This puts last month’s total at 38.5 mill bbl and December’s total to 36.5 mill bbl, while September and October saw 43 and 45.5 mb, respectively. I almost see a cat with the legs sticking up in the air! This isn’t painting a picture of overwhelming crude demand! EVs keep on crunching gasoline demand, and diesel is bad too. Just a bad story. One source believes the lower allocations will see refineries going to the spot market to get top ups. If they don’t, the ghost of the black cat will smile at us and float away. 👻 PetroChina is not disappointing, they couldn’t get enough Dubai last week. They were really guzzling. Also recall that PetroIneos, PetroChina’s joint venture with Ineos, has bagged 6 cargoes in the North Sea window so far in November.
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