Oil flows from OPEC+ Kings Saudi and Russia rebounded last month

Saudi Arabia and Russia, the two nations leading OPEC+ oil cuts, boosted their crude exports last month, offering solace to a global market where supply is getting increasingly tight.

The two lifted their combined crude exports by about 1 million barrels a day in September. Their collective flows remained well down on where they were as recently as July. The final number for September could be lower if some of the oil ends up going to refineries on the country’s west coast.

The increase in Saudi shipments — from a 30-month low — was expected despite an ongoing pledge to curb flows through the end of the year. Middle Eastern producers generally burn through their own crude in the summer months as domestic power demand rises for air conditioning. That can limit the amount available for export. 

The kingdom’s seaborne crude flows climbed by more than 800,000 barrels a day, according tanker tracking data compiled Bloomberg. Flows from Russia’s key Baltic and Black Sea ports were up by about 325,000 barrels a day. They slipped from its terminals in the Arctic and Pacific. 

Russian oil is currently trading at closer to $100 a barrel than a Group of Seven-imposed cap of $60 a barrel. US Treasury Secretary Janet Yellen said on Friday that the cap may be losing its sting.

Saudi officials didn’t immediately comment on the export figures. 

The kingdom’s shipments to China, its top buyer, hit a five-month high. For Russia’s western exports, India was the main buyer, while its Arctic and Pacific flows are mostly en route to China.