In the spring, China bought a record amount of cheap fuel and has now started selling it, writes Bloomberg. About a million barrels went to buyers who usually buy oil in the Middle East or Africa.
The oil accumulated in reserves began to enter the market just as the participants in the OPEC + deal are preparing to increase production. At the same time, the Agency clarifies, the Shanghai international energy exchange was not going to become a regional oil supplier: the launch of futures trading was mainly needed to popularize the yuan.
In mid-July, OPEC + agreed to increase oil production. It also turned out that Russia was in violation of the deal, so next month it will have to reduce oil production more than the quota prescribed by the agreement. The Russian quota was 8.492 million barrels per day, but excluding gas condensate, which is not officially published. The excess was 134,000 barrels per day for two months.