Saudi Arabia’s Crude Oil Exports Plummet to Lowest Level in Nearly 2 Years

In June, Saudi Arabia’s crude oil exports fell to their lowest level in twenty-one months, according to the most recent data from the Joint Organizations Data Initiative (JODI), which was released on Wednesday.

The largest crude oil exporter in the world, the Kingdom, delivered 6.80 million barrels per day (bpd) of petroleum in June, a decrease of 124,000 bpd from May, according to JODI, a database that gathers self-reported statistics from numerous nations.

Saudi Arabia’s oil shipments fell below 7 million barrels per day (bpd) in May for the first time this year as the Kingdom and a number of other significant OPEC+ producers started a combined cut of 1.6 million barrels per day in that month.

In June, Saudi Arabia’s product inventories decreased by 1.64 million barrels but its crude inventories increased by 1.45 million barrels, according to JODI statistics released today.

According to JODI data, Saudi Arabia increased its direct usage of crude in direct burn for power by 65,000 bpd to 543,000 bpd in June.

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Oil Production Dips

According to today’s JODI data, Saudi Arabia’s crude oil production decreased by 3,000 bpd in June to 9.96 million bpd. The output of Saudi crude was at its lowest point in 19 months at this time.

After initiating a unilateral voluntary cut of 1 million bpd in July “to support the stability of the oil market,” Saudi Arabia’s oil output is expected to average about 9 million bpd in July, August, and September. The unilateral cut was originally scheduled to continue through the end of July but was twice extended, once into August and once into September.

The International Energy Agency (IEA) reported last week that the oil output from the OPEC+ group fell by 1.2 million bpd in July to 50.7 million bpd, the lowest level in over two years as Saudi Arabia started its production cut of 1 million bpd.

Saudi Arabia’s reduction in production has caused the Kingdom’s output of crude oil to now fall below that of Russia, OPEC’s main ally in the OPEC+ alliance.

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Source: Oil Price