Saudi Arabia’s crude oil exports reached their highest level in three months in October, according to new data from the Joint Organizations Data Initiative (JODI) released on Wednesday.
The world’s largest crude oil exporter shipped an average of 5.92 million barrels per day (bpd) of crude oil in October, an increase of 174,000 bpd compared to September.
This marks the highest export volume from Saudi Arabia in the past three months, based on JODI’s database, which compiles self-reported figures from various countries. However, Saudi Arabia is still sticking to its commitment to maintain production “around 9 million bpd.” Oil production slightly decreased by 3,000 bpd, averaging 8.972 million bpd in October, according to JODI data.
Refinery activity also saw a small decline, falling to 2.737 million bpd. Additionally, the direct burning of crude oil for power generation continued to decrease as the extreme summer heat in Saudi Arabia eased. Direct crude burn dropped by 156,000 bpd to 362,000 bpd, the data showed.
Earlier this month, Saudi Arabia and its OPEC+ partners decided to delay easing production cuts of 2.2 million bpd until April 2025, instead of starting in January 2025 as originally planned. The group also extended the timeline for unwinding these cuts to September 2026.
As the top producer in the OPEC+ group, Saudi Arabia is carrying the bulk of the cuts. In addition to the OPEC+ reductions, the Kingdom is also implementing its own voluntary cut of 1 million bpd.
Despite these cuts, oil prices have not seen significant gains this year, largely due to weaker-than-expected demand, particularly in China.
Looking ahead, analysts expect modest growth in global oil demand next year, which may make it even more difficult for Saudi Arabia and the OPEC+ group to execute their exit strategy. Meanwhile, oil supply from non-OPEC+ countries, including the U.S., Brazil, and Guyana, is expected to rise, potentially further diminishing OPEC’s market share.
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