Suez Canal Handles Record Gulf Crude, Diesel But Revenues Down In 2016

Egypt’s Suez Canal benefited from record Gulf oil output and exports in 2016 – in the form of products as well as crude, with diesel shipments in particular targeting Europe. But overall volumes and revenues were down – providing a poor return on the route’s $8.5bn 2015 expansion.

The Middle East saw record crude output and exports in 2016. The region’s six Opec members produced a collective record 24.6mn b/d (MEES, 6 January).

Iraq’s southern exports hit a record 3.29mn b/d up 400,000 b/d on 2015; Iran’s exports of 1.96mn b/d (to November) were the highest since 2011 and almost 800,000 b/d higher than year-ago levels. Saudi crude exports for the first eleven months of 2016 were up by a more modest 200,000 b/d on a year earlier, but at 7.61mn b/d they are still on course to edge past 2013’s record 7.54mn (see p7).

Though the bulk of additional Gulf crude exports have targeted Asia, additional volumes have also gone to Europe, boosting northbound crude shipments through the Suez Canal to a record 1.432mn b/d and overall northbound oil shipments to 2.244mn b/d (see charts 1&2, and table, p6 for full data). (CONTINUED - 1427 WORDS)


chart 1: Suez Canal: Northbound Oil Volumes Have Doubled Since 2010 To Record 2.24mn B/D In 2016...
chart 2: ...With Seasonal Records Set For Each Quarter Last Year (Mn B/D)
chart 3: Northbound Products Shipments, And Of Diesel In Particular, Have Soared With The 800,000 B/D Of Saudi Refineries To Have Started Up Since 2013 Targeting Europe
chart 4: Northbound Diesel Volumes Broke All Four Quarterly Records In 2016 (‘000 B/D)
chart 5: Suez Canal Monthly Revenue ($Mn): Down 8% On 2014 Despite 2015’s Expansion
chart Suez Canal Gross Oil Shipments Dip To 3.4mn B/D From 2015 Record 3.45mn B/D (Mn B/D)
table Suez Canal 2016 Transit Data (Mn Tons): Oil Shipments Up But Revenue Down