https://arab.news/w4vbb
RIYADH: Saudi Arabia’s crude oil production rose to 8.97 million barrels per day in October, a 0.36 percent increase year on year, according to the latest data from the Joint Organizations Data Initiative.
The report noted a 5.91 percent drop in crude exports, which fell to 5.92 million bpd. Domestic petroleum demand also declined by 96,000 bpd year on year, reaching 2.49 million bpd.
Refinery crude exports surged 35 percent year on year to 1.41 million bpd in October but declined by 9 percent, or 139,000 bpd, compared to September.
Key refined products included diesel, motor gasoline, aviation gasoline, and fuel oil. Diesel exports accounted for 46 percent of refined product shipments, while motor and aviation gasoline made up 20 percent, and fuel oil comprised 13 percent. Notably, gas diesel shipments rose 43 percent to 641,000 bpd in October.
Saudi Arabia’s refinery output reached 2.74 million bpd, a 29 percent year-on-year increase, with diesel representing 45 percent of total refined products, followed by motor and aviation gasoline at 25 percent and fuel oil at 17 percent.
OPEC+ recently extended its supply cuts — initially implemented to stabilize the market — by an additional three months, pushing them through March 2025.
These voluntary cuts, amounting to 2.2 million bpd, will be phased out gradually between April 2025 and September 2026, with room for adjustments based on market conditions.
The alliance, which includes major producers such as Saudi Arabia and Russia, is withholding 5.86 million bpd, roughly 5.7 percent of global demand, as part of measures introduced since 2022.
The agreement, made during the 38th OPEC and non-OPEC Ministerial Meeting, also allows the UAE to increase output by 300,000 bpd starting in April 2025.
Despite these efforts, Brent crude prices have remained steady, trading between $70 and $80 this year.
Direct crude usage
Saudi Arabia’s direct crude oil burn fell by 169,000 bpd in October to 362,000 bpd, a 32 percent year-on-year decline and a 30.1 percent drop from September. This marks the lowest level in seven months, driven by seasonal demand shifts and structural changes in the Kingdom’s energy strategy.
The reduction is largely attributed to cooler temperatures in October, which significantly decreased electricity demand, particularly in regions reliant on air conditioning during the summer. Additionally, improvements in the Kingdom’s electricity infrastructure have reduced reliance on crude oil as a backup energy source.