Since the Organization of Petroleum Exporting Countries (OPEC), Russia and other countries agreed to extend the cut in oil production last May 25, oil prices have fallen by more than 10% because the decision caused the decline on growth in US crude reserves, which is not convenient for Saudi Arabia. The Arab monarchy owns a large refinery on the US coast of the Gulf of Mexico and could reduce its exports to the United States to manipulate the figures, according to information from the petroleum community.
The US Energy Information Administration has updated weekly data on US crude oil reserves, including imports and exports. This information has been crucial to the recent price changes. "I think the next plan of attack is to drop exports to the United States to get a drop in the EIA report. This would make it appear that inventories are down, "said John Kilduff, an analyst at Again Capital. According to the expert, of the 8 million barrels per day imported by the United States, 1 million comes from Saudi Arabia. This figure could fall between 100,000 and 250,000 barrels per day.
"Saudis understand the importance of shifting the focus to the United States and continue to point out that they are willing to reduce supply to the US”, Helima Croft, global head of commodity strategies at RBC, told CNBC. “It's a good time to reduce them, because they coincide with fluctuations in national seasonal demand," Croft said. Demand for crude oil traditionally rises in the Gulf in the summer. Crude oil futures touched the lows in 6 weeks on Thursday amid concerns that reserves will continue to grow in the world, particularly in North America.