Saudi Arabia, the leading global oil exporter, witnessed a slight decrease in its crude oil exports for January, marking the second consecutive month of decline, according to data released by the Joint Organizations Data Initiative (JODI).
In January, the Kingdom’s crude exports dipped by 0.2% to 6.297 million barrels per day (bpd), compared to 6.308 million bpd in December. However, Saudi Arabia’s crude production showed a modest increase, rising to 8.956 million bpd from 8.944 million bpd in December.
The monthly export data, crucial for understanding global oil market dynamics, are provided by Riyadh and other OPEC members to JODI, which then publishes the information on its website.
Alongside the decline in exports, Saudi refineries experienced a marginal increase in crude throughput, reaching 2.425 million bpd in January, up by 0.010 million bpd. Direct crude burning also saw a minor uptick, rising by 5,000 bpd to 308,000 bpd.
These developments come amidst discussions within OPEC+ regarding the extension of voluntary output cuts of 2.2 million bpd, aimed at stabilizing oil prices amidst uncertainties in demand and geopolitical tensions.
The International Energy Agency (IEA) has revised its outlook on 2024 oil demand growth, reflecting a cautious optimism compared to OPEC’s projections.
Earlier this month, Saudi Arabia made a subtle adjustment to the official selling price of its flagship Arab Light crude to Asia for April, in line with market expectations.
As the global energy landscape continues to evolve, stakeholders remain attentive to the developments emanating from major oil-producing nations like Saudi Arabia, which play a significant role in shaping global oil market dynamics.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
19th March, 2024
