In July, Saudi Arabia exported 5.74 million barrels per day (bpd) of crude oil, marking a decrease of 306,000 bpd from June. This is the lowest export level since August 2023, according to the latest data from the Joint Organizations Data Initiative (JODI).
As the world’s leading crude oil exporter, Saudi Arabia typically reduces its exports during the summer months. This is due to increased domestic consumption for power generation, driven by soaring electricity demand in the heat of the desert summer. In July, the country’s direct use of crude rose by 211,000 bpd to reach 770,000 bpd, the highest level in seven months.
Crude oil production in Saudi Arabia also increased in July, rising by 111,000 bpd to 8.94 million bpd. Despite the higher production, exports fell, indicating that the additional crude was primarily used for domestic power generation.
Saudi Arabia has committed to maintaining its output at approximately 9 million bpd, adhering to its earlier pledge when it announced a voluntary cut of 1 million bpd on top of its OPEC+ share.
Looking ahead, Saudi Arabia aims to attract more customers in Asia, where demand has been weaker than expected this year. Earlier this month, the Kingdom reduced its official selling prices (OSPs) for October shipments to Asia. This adjustment comes amid declining refining margins in China and a drop in wider Asian benchmark prices. The price of Saudi Arabia’s flagship grade, Arab Light, for October was cut by $0.70 per barrel compared to September.
As a result of these price cuts, demand from major Chinese refiners has increased, while the nominations from significant private refiners with import quotas have remained stable for the upcoming month.