Saudi Arabia’s crude oil exports surged to their highest level in more than a year in June, as the Kingdom increased shipments of crude to overseas storage amid concerns of potential supply disruptions due to conflict in the Middle East. OPEC‘s largest producer has intervened in oil markets for decades, providing additional oil during disruptions or cutting output when it deemed the market was oversupplied.
Crude exports rose by 450,000 barrels per day (bpd) from May’s level to 6.33 million bpd in June, according to Kpler data. There could be a further increase in July to nearly 7.5 million bpd, Kpler forecasts.
The rise last month occurred against a backdrop of worries regarding supply disruptions stemming from the conflict between Israel and Iran, as well as a U.S. attack on Iranian nuclear sites. The OPEC+ producer group and Saudi Arabia are aiming to enhance their market share after years of output cuts, according to OPEC+ sources.
The increase in June also coincided with a decision by OPEC+ to raise its oil output quotas in June by 411,000 bpd. Oil prices edged higher on Tuesday as investors assessed positive demand indicators while remaining cautious ahead of an OPEC+ meeting to determine the group’s output policy for August.
Read more: Saudi Arabia’s crude oil exports hit 9-month high, reaching 6.413 million bpd in March
OPEC+ decision in focus
According to analysts, all attention will be on OPEC+’s decision over the weekend, when the group is expected to add another 411,000 bpd of production to gain more market share, primarily against U.S. shale producers. OPEC+ member Kazakhstan, one of the world’s ten largest oil producers, raised oil production last month to match an all-time high, a source familiar with the data told Reuters on Tuesday.
In the U.S., crude oil inventories increased by 680,000 barrels in the past week, according to sources citing figures from the American Petroleum Institute. Official data from the Energy Information Administration is expected Wednesday at 10:30 a.m. ET.
