{"id":573304,"date":"2020-07-28T04:17:41","date_gmt":"2020-07-28T04:17:41","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/"},"modified":"2020-07-28T04:17:41","modified_gmt":"2020-07-28T04:17:41","slug":"oil-demand-slump-hits-egypts-sumed-pipeline","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/","title":{"rendered":"Oil demand slump hits Egypt\u2019s Sumed pipeline"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-08\"><\/a> <strong>Egypt\u2019s Sumed oil pipeline is feeling the effects of the global demand slump:<\/strong> Egypt\u2019s Sumed pipeline has recently been operating at only a quarter of its capacity due to a historic slump in global demand for oil and the subsequent production cuts that were introduced in May, data compiled by <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-07-27\/egypt-s-giant-oil-pipeline-toward-europe-slows-to-a-trickle?srnd=premium-middle-east&sref=mmeFTDW1\">Bloomberg<\/a> shows. Flows through the pipeline, which is designed to transport up to 2.5 mn barrels of crude per day to the Mediterranean from the Red Sea, have slowed as European countries saw consumption drop by as much as 90%, prompting oil producers to <a href=\"https:\/\/www.theguardian.com\/business\/2020\/apr\/12\/major-oil-producing-nations-agree-historic-10-cut-in-output\">cut output by 10%<\/a>. As a result, crude flows into Sumed fell almost 50% to 700k bbl\/d in June and July from nearly 1.3 mn in April.<\/p>\n<p><strong>Signs of recovery in July:<\/strong> Lifting from the pipeline reached a nadir in June, but since then there has been a slight recovery as a pick up in demand from European refineries draws more crude. Despite this, flows entering the pipeline have failed to rebound, hurt most of all by Saudi Arabia\u2019s continued production cuts. Opec+ is due to start easing the cuts in August, but as most of the new supply is expected to be used domestically, Sumed and other pipelines around the world may have to wait longer before flows pick up.<\/p>\n<p><strong>Why Sumed? <\/strong>Giant crude tankers carrying shipments that mostly come from Saudi Arabia are too big to navigate through the Suez Canal fully loaded to reach their destinations in Europe and North America. Offloading some of their cargo into one end of the pipeline in Ain Sokhna allows the carriers to cross the Suez Canal (without sitting too deep in the water) and then refill in Sidi Kerir. They can also fully offload their cargo to westbound tankers stationed on the other side and move to their next consignment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt\u2019s Sumed oil pipeline is feeling the effects of the global demand slump: Egypt\u2019s Sumed pipeline has recently been operating at only a quarter of its capacity due to a historic slump in global demand for oil and the subsequent production cuts that were introduced in May, data compiled by Bloomberg shows. Flows through the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":573305,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,297,1778,4420,91,2380,7103,5601],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-573304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-enterpriseam","tag-europe","tag-middle-east","tag-north-america","tag-oil-and-gas","tag-speed-round","tag-suez-canal","tag-sumed-pipeline","wpautop","entry"],"acf":{"mongo_id":"02f1e23a-4bd9-4a26-9a93-592e51140fa0","is_powered_by":true,"section_story_id":"1caf2c84-825a-44dc-84e0-19e619e882ed","story_type":"1","photo_url":"https:\/\/ent.news\/2020\/7\/227.jpg","photo_position":"above","related_issue":[573285],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Oil demand slump hits Egypt\u2019s Sumed pipeline - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oil demand slump hits Egypt\u2019s Sumed pipeline\" \/>\n<meta property=\"og:description\" content=\"Egypt\u2019s Sumed oil pipeline is feeling the effects of the global demand slump: Egypt\u2019s Sumed pipeline has recently been operating at only a quarter of its capacity due to a historic slump in global demand for oil and the subsequent production cuts that were introduced in May, data compiled by Bloomberg shows. Flows through the [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-28T04:17:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2020\/7\/227.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Oil demand slump hits Egypt\u2019s Sumed pipeline\",\"datePublished\":\"2020-07-28T04:17:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/\"},\"wordCount\":311,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2020\/7\/227.jpg?fit=%2C&ssl=1\",\"keywords\":[\"EnterpriseAM\",\"Europe\",\"Middle East\",\"North America\",\"oil and gas\",\"SPEED ROUND\",\"Suez Canal\",\"Sumed pipeline\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/oil-demand-slump-hits-egypts-sumed-pipeline\/\",\"name\":\"Oil demand slump hits Egypt\u2019s Sumed pipeline - 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Although this is the highest level since May 2020, it remains 150k bbl\/d below pre-pandemic levels. This uptick comes\u2026","rel":"","context":"In &quot;Energy&quot;","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/273.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575630,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/21\/israel-uae-open-talks-over-new-oil-route-threatening-egypts-shipping-business\/","url_meta":{"origin":573304,"position":1},"title":"Israel, UAE open talks over new oil route, threatening Egypt\u2019s shipping business","author":"enterpriseam admin","date":"21 October 2020","format":false,"excerpt":"Israel, UAE make progress on oil route to Europe that could bypass Egypt\u2019s Suez Canal: An agreement signed this week by Israel\u2019s state-owned Europe Asia Pipeline Co (EAPC) and UAE-based Med-Red Land Bridge could see oil shipped from the Gulf to Europe bypass the Suez Canal. The binding MoU aims\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/10\/220.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":646648,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/06\/20\/strategy-blueprint-to-turn-egypt-into-an-energy-hub-to-be-ready-by-november\/","url_meta":{"origin":573304,"position":2},"title":"Strategy blueprint to turn Egypt into an energy hub to be ready by November","author":"enterpriseam admin","date":"20 June 2017","format":false,"excerpt":"A government blueprint to begin transforming Egypt into a regional energy hub will be completed in November, Al Borsa reports. The strategy, which is being put together by a group of consultants hired by the Oil Ministry, aims to boost Egypt\u2019s role in trading and storing crude oil, petroleum products,\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":638925,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/10\/17\/kpc-renews-crude-storage-agreement-with-sumed\/","url_meta":{"origin":573304,"position":3},"title":"KPC renews crude storage agreement with SUMED","author":"enterpriseam admin","date":"17 October 2017","format":false,"excerpt":"Kuwait Petroleum Corporation (KPC) announced renewing the crude oil storage and transportation contract with SUMED, according to KUNA. \u201cThe contract is one of the important strategic contracts aims at expanding KPC's presence in the Mediterranean Region and North West Europe to increase Kuwait's market share in that region, KPC said.\u201d","rel":"","context":"In &quot;Energy&quot;","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":641067,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/09\/12\/saudi-aramco-may-have-given-a-big-boost-to-our-ambitions-as-a-regional-energy-hub\/","url_meta":{"origin":573304,"position":4},"title":"Saudi Aramco may have given a big boost to our ambitions as a regional energy hub","author":"enterpriseam admin","date":"12 September 2017","format":false,"excerpt":"Good news for our energy hub ambitions: Saudi Aramco is considering using excess capacity at Egyptian refineries to refine Saudi crude and use Egypt as a marketing hub for refined Saudi oil products, according to Ahram Gate. The suggested plan is to ship the crude through the SUMED pipeline and\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":637838,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/27\/aramco-likely-to-begin-refining-fuel-in-egypt-in-1q2018-officials\/","url_meta":{"origin":573304,"position":5},"title":"Aramco likely to begin refining fuel in Egypt in 1Q2018 - officials","author":"enterpriseam admin","date":"27 November 2017","format":false,"excerpt":"Aramco likely to begin refining fuel in Egypt in 1Q2018 -officials: Saudi Aramco is likely to begin refining crude oil in Egyptian refineries in 1Q2018, an official from the Oil Ministry tells Al Shorouk, initially at the Middle East Oil Refinery (MIDOR). Talks are still ongoing with Saudi\u2019s largest oil\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/573304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=573304"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/573304\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/573285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/573305"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=573304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=573304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=573304"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=573304"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=573304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}