Algerian Crude Exports Up as OPEC+ Cuts Ease

Algeria boosted exports of its flagship light sweet crude Saharan Blend by over 10% last month following an increase in its OPEC+ output quota. Exports rose to just under 291,000 b/d in August, up from July's year-to-date low of 261,000 b/d. State-owned Sonatrach's participation in the spot market has been limited in recent months by Algeria's commitment to the OPEC+ production restraint agreement. The deal required Algeria to cap crude production at 816,000 b/d from May until the end of July. The country's quota in August-December has increased to 864,000 b/d.

A rise in Saharan Blend exports bound for northwest Europe and Asia-Pacific accounted for the majority of last month's increase, with shipments to both regions nearly doubling compared with July. But this was partially offset by a month-on-month drop of almost 40% in exports to the Mediterranean.

France was the biggest buyer of Saharan Blend last month, taking almost 93,000 b/d. The Netherlands took around 54,000 b/d, more than twice as much as in July, while exports to Italy slumped to just 10,000 b/d from around 43,000 b/d in the previous month.

India, traditionally one of the biggest buyers of Saharan Blend in Asia-Pacific, took a little over 33,000 b/d in August following a one-month hiatus in July, while South Korea's bookings dipped slightly to just over 20,000 b/d. No Saharan Blend has sailed for the US since May. Argus assessed October-loading Saharan Blend at a 15¢/bl discount to the North Sea Dated benchmark yesterday.