OPEC now sees oil market in balance within a year

OPEC’s own crude output is likely to edge up to 33.2 million barrels per day next year. (Reuters)
Updated 14 December 2017
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OPEC now sees oil market in balance within a year

PARIS: Supply and demand in the global oil market are likely to balance out by the end of 2018 thanks to a pick-up in demand, notably from the transport sector, OPEC said on Wednesday.
Demand is projected to grow by 1.51 million barrels per day (mb/d) next year, compared to an already higher-than-expected 1.26 million increase this year, to reach 98.45 mb/d, OPEC said in a monthly report.
“Expansion in the transportation sector is expected to provide the bulk of oil demand growth,” the report said.
Expected strong economic expansion across the world will also underpin industrial and construction fuel demand, OPEC said.
OPEC’s own crude output is likely to edge up to 33.2 mb/d next year from 32.8 this year, a smaller increase than previously thought.
Falling output in Angola, Saudi Arabia, Venezuela and the UAE meant that OPEC pumped 133,000 barrels per day less in November than the previous month, according to secondary sources.
OPEC and some non-members of the group, including Russia, last month extended an output-cut agreement until the end of 2018 in the hope of re-balancing the oil market and underpinning the price of crude.
Non-OPEC oil producers will pump around 990,000 barrels of crude per day more next year than this year as US shale oil producers ramp up output, the report predicted.
OPEC nevertheless believes that an overhang of global stocks will dwindle next year, “arriving at a balanced market by late 2018.”


China sorghum imports jump after Beijing dropped probe into US shipments: Customs

Updated 23 July 2018
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China sorghum imports jump after Beijing dropped probe into US shipments: Customs

  • China brought in 450,000 tons of sorghum in June, up from last year’s 324,301 tons
  • Corn buyers, meanwhile, scooped up cargoes on worries over the return of US-China trade policy tit-for-tat amid high domestic prices

BEIJING: China’s sorghum imports in June surged 38.1 percent on year, boosted by a temporary easing of Sino-US trade tensions, while corn imports for the month rose to one of highest levels in the past decade, customs data showed on Monday.
China brought in 450,000 tons of sorghum in June, up from last year’s 324,301 tons. Volumes were still down slightly from 470,000 tons in May, data from the General Administration of Customs showed.
Beijing announced in mid-April that importers of sorghum from the United States would have to put up a 178.6 percent deposit on the value of shipments. Several cargoes already on the way changed course and were diverted to other markets.
A month later in a goodwill measure, however, China dropped the deposit and an anti-dumping probe into US sorghum imports as the two sides appeared to be reaching consensus on resolving trade issues.
“Some cargoes were already on the way to China when Beijing dropped the deposit. Then they cleared customs in weeks after. That should have pushed up the June volumes,” said Cherry Zhang, an analyst with Shanghai JC Intelligent Co. Ltd, before the data release.
Corn buyers, meanwhile, scooped up cargoes on worries over the return of US-China trade policy tit-for-tat amid high domestic prices.
Corn imports in June hit 520,000 tons, up 34.6 percent from a year ago and the second highest since July last year. The figures were down from 760,000 tons in May, the data showed.
The corn imports in the first six months tripled to 2.21 million tons, already close to China’s total 2017 purchase of 2.82 million tons of the grain, according to the data.
“There were margins importing corn as domestic corn prices were relatively high. And buyers were buying more corn in recent couple of months to prepare for the Sino-US trade tension in advance,” said Meng Jinhui, an analyst with Shengda Futures.
UScorn and sorghum shipments to China should drop significantly in July and August, analysts and traders said, as Beijing imposed a 25 percent tariff on US grains on July 6.
China buys almost all its sorghum imports from the United States.
In the first half of this year, China has brought in 3.25 million tons of sorghum, up 8.7 percent from the same period of 2017, the data showed.
China also brought in 590,000 tons of barley in June, down 5.6 percent from a year ago. Barley imports for the first half of the year were at 4.4 million tons, down 2.7 percent.
Wheat imports were at 310,000 tons in June, down 33.6 percent from a year ago. Wheat imports for the first half were at 1.95 million tons, down 26.4 percent, the data showed.
China bought 280,000 tons of sugar and 98,566 tons of pork in June. In the first half of the year, China’s sugar imports were at 1.38 million tons, and shipments of pork were at 647,985 tons, both down from last year’s levels.