Giant Saudi crude tankers moor off Egyptian Ain Sokhna port
Updated 6/18/2023 8:12:00 AM
Arab Finance: Supertankers carrying more than 20 million barrels of Saudi Arabian crude have gathered near Egypt's Red Sea coast, the largest since the depths of the global epidemic in 2020, Bloomberg reported on June 16th, citing data from Vortexa.
Unknown factors may have contributed to the accumulation, which coincides with Saudi Arabia's promise to further reduce production in order to boost prices.
As investors attempt to predict the path of demand growth, particularly in China, concerns about a supply glut have taken hold of the markets.
“The last time Saudi crude floating storage volumes were above current levels was in the second quarter (Q2) of 2020,” Jay Maroo, Vortexa’s head of market intelligence and analysis for the Mideast and North Africa, recently wrote in a note.
In Q2 2020, the levels hit 30 million barrels, “but that was amid a wider rise in floating storage volumes and a strong contango structure supporting the activity,” Maroo added.
The oil terminal of Ain Sokhna is still witnessing the arrival of other vessels and discharging cargoes with a little to almost no delay.
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