On March 7, Saudi Arabia unsheathed a new oil market weapon: lower oil prices. With steep cuts in Saudi Aramco’s official selling prices (OSPs) for crude oil sales and with Vienna Alliance production restraint now eliminated after the collapse of Saudi and Russian talks on March 6, Saudi Arabia has made its intentions clear to sell as much oil as its customers want to buy, up to its capacity of 12 million barrels per day (MMb/d). A massive crude oil market inventory build is underway based on previous periods’ oversupplies and now further exacerbated by a coronavirus-induced global economic downturn.
Full Inventory Trends Reports are for NPGA members only. To read and download the March report, click here.