Crude has run into a wall of resistance today and fallen over, after sprinting full pelt at fifty-dollardom for the last week and a half. While we see some supportive elements appearing in our ClipperData, some startling signs of salubrious supply have sent the bulls running for the hills today.
Libyan output is said to have climbed above 1 million barrels per day in the last month, and this is something emphatically endorsed by our export data. As we tally up the final flows for July, we can see that exports have risen to a whopping 900,000 bpd. If, as we discussed last week, Saudi Arabia is talkin’ the talk and walkin’ the walk, then Libya has the guise to surprise. Or something like that.
While the threat of further U.S. sanctions still hang over Venezuela, we can see from our ClipperData that Curacao continues to receive deliveries of U.S. naphtha.
This is used as a diluent with Venezuela’s heavy crude, so that it can be exported as DCO (diluted crude oil). Imports through the first seven months of the year are averaging close to 2016’s level at