Saudi Arabia’s crude oil exports plummeted to their lowest level in nearly a year in July, according to data from the Joint Organizations Data Initiative (JODI). The world’s largest crude exporter saw its oil exports fall to 5.741 million barrels per day (bpd) in July, a 5.1% decline from June’s 6.047 million bpd.
This decrease comes despite a slight increase in Saudi Arabia’s overall production, which rose to 8.941 million bpd from 8.830 million bpd. However, domestic refinery throughput decreased by 0.026 million bpd to 2.397 million bpd, while direct crude burning surged by 211,000 bpd to 769,000 bpd.
The slump in exports reflects growing concerns about weak demand, particularly in Asia. Saudi Arabia recently cut the price of its flagship Arab Light crude to Asia to its lowest level in nearly three years. This move follows downward revisions to 2024 oil demand growth forecasts by both OPEC and the International Energy Agency (IEA).
China’s dwindling oil refinery output, which fell 6.2% in August from the previous year, has contributed to these concerns. The decline marks the fifth consecutive month of decreased output.
OPEC+ oil producers have responded to these market trends by delaying planned production increases for October and November, with the possibility of further pauses or reversals if necessary.
The JODI data provides valuable insights into Saudi Arabia’s oil export trends, highlighting the kingdom’s adaptability in response to shifting global market dynamics.
