Saudi Arabia’s crude oil exports rose in May to 6.12 million barrels per day (bpd), a 2.51 percent increase compared to the previous month. This data was revealed by the Joint Organizations Data Initiative (JODI).
Additionally, the Kingdom’s crude oil production increased to 8.99 million bpd, reflecting a monthly rise of 0.08 percent.
Surging refinery crude output
The data also showed that Saudi Arabia’s refinery crude output, which represents the processed volume of crude oil yielding refined products such as gasoline, diesel, jet fuel, and heating oil, surged to an almost six-year high. It increased by 17 percent compared to the previous month, reaching 3.026 million bpd. This marked a 16 percent increase from the 2.61 million bpd recorded during the same month in 2023.
6.12 mb/d: Saudi Arabia's crude exports rose by 150 kb/d m/m.#JODIData #JODIOil #OOTThttps://t.co/dBJJdwcfLN pic.twitter.com/1jn2fAWnSB
— JODI (@JODI_Data) July 17, 2024
Decline in refinery oil products exports
However, exports for refinery oil products declined by 13 percent to 1.22 million bpd compared to the previous month. Meanwhile, Saudi demand for petroleum products rose by 75,000 bpd to 2.355 million bpd.
As a leading global oil producer, Saudi Arabia plays a crucial role in supplying these refined products to meet worldwide energy demands.
OPEC+ extends output cuts into 2024
In June 2024, OPEC and its allies, known as OPEC+, agreed to extend most of its substantial oil output cuts into 2024, with plans to gradually phase them out in 2025. This decision aims to support the market amid sluggish global demand growth, high interest rates, and increasing US production.
The OPEC+ group has implemented several deep output cuts since late 2022, with participation from various member countries, including Saudi Arabia, the UAE, and Iraq.
Decline in Saudi Arabia’s direct crude oil burn
Additionally, Saudi Arabia’s direct burn of crude oil, which involves the utilization of oil without substantial refining processes, experienced a decrease of 2,000 bpd in May, representing a 0.5 percent decline compared to the preceding month. The total direct burn for the month amounted to 398,000 bpd, a 17 percent decline compared to May 2023.
Read more: Saudi Arabia’s E&P investments to reach $7 billion in 2025: Report
Transitioning to a more efficient energy mix
The Ministry of Energy in Saudi Arabia aims to enhance the contributions of natural gas and renewable sources as part of the Kingdom’s goal to achieve an optimal, highly efficient, and cost-effective energy mix. This involves replacing liquid fuel with natural gas and integrating renewables to constitute approximately 50 percent of the electricity production energy mix by 2030.
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