Opec+ ships record fuel volumes and expose some CROD supply constructions

The most important oil producers in the Middle East export record volumes of sophisticated petroleum products and reduce the overall effect of their raw production cables on the market, reports Reuters, referring to the data and analysts of flow tracking.

The Opec+ producers have observed crude oil production and supply for years to compensate for and stabilize the market, “as it repeatedly says.

But the most important OPEC+ producers in the Golf saw their combined fuel exports rose to a record high last year. This has probably negated part of the potential bullish driver, which comes from the raw production cuts, especially in the middle of the slowdown of the growth of the Chinese fuel requirement, according to the Reuters analysis.

The Opec+ Treaty covers the production of crude oil in Opec and the dozen non-OPEC producers led by Russia that are part of the pact. Refined products are not included in the shop.

For the manufacturers of the Middle East with sufficient refinery capacity, the exports of fuels increase the petroleum revenue without violating crude oil production rates.

According to Kpler and Oilex from Reuters, deliveries at the sea of ​​fuels from the Gulf States rose to a new record high last year.

The heavyweights of Opec, Saudi -Arabia, Iraq, the United Arab Emirates (VAE) and Kuwait as well as Oman (no Opec producer, but an Opec+ member) became 5.51 million barrels per day (BPD) of sophisticated petroleum products in 2024 after more than 7% a year according to the data.

In the past decades and a half, most golf producers have increased their refinement capacity, and the Middle East has been one of the most important regions that have promoted global refinement capacity expectations in recent years.

The Kuwait Petroleum Corporation (KPC), for example in 2022, the massive new al-Zour refinery, one of the largest crude oil processing plants in the Middle East.

The refinery, which is the operator Kuwait Integrated Petroleum Industries Company (KIPIC), is the world's largest grass root refinery with 615,000 BPD capacities, started operating in 2023.

By Charles Kennedy for Oilprice.com

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