/biz/ - Business & Finance

>Vortexa data thus far for September, has Saudi Arabian crude exports ~800KBbl/d higher than the August exit 3-week average, touching 7.5MMBbl/d during the week ended September 15th. While the market may digest this news poorly in the coming weeks, as official news is filtered through JODI (with said reaction contributing to our view that >$90/Bbl isn't permanent), we don't view higher exports as detrimental to balances, and still largely think OPEC cuts will be directionally complied with (i.e. we will be short barrels). Given recent weakness in equity prices, it's our view that export-headline led softening in duration names would be an opportunity to increase positioning.
>With Middle Easten floating storage now ~70% off of August highs, when the original exports cuts started to really hit the tape, we are confident that a momentarily increase in exports is not an increase in production, rather an expected easing in local demand, and the rearrangement of stockpiles.