Crude oil production from the Neutral Zone shared by Saudi Arabia and Kuwait rebounded to 264,000 b/d in October,the second highest this year,following the restart of the Khafji oil field the previous month,with almost half of the volume heading to China.Production from the zone fell to 180,000 b/d in September after the offshore Khafji field was halted due to a fire on Aug.10,resuming in early September following repair work.Exports to China reached 117,000 b/d in October,up from 65,000 b/d in September and more than doubling for the year-to-date,according to SP Global Commodities at Sea shipping tracker.Looking ahead however,China's purchases from the Neutral Zone could fall back as”prices are high”relative to other crudes available in the market,a buyer who took a shipment from Khafji told SP Global Commodity Insights.Saudi Arabia and Kuwait-which originally agreed in 1970 to co-manage and share crude production from the zone equally-have been looking to boost output and production capacity in the area,also known as the Divided Zone,following the resumption of work in the area.
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