Saudi Arabia, the world’s largest oil exporter, witnessed a decline of 0.2 percent in crude oil exports, marking the second consecutive month of decline in January, according to data from the Joint Organizations Data Initiative (JODI). The decline in exports comes amid ongoing efforts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to stabilize global oil markets amid evolving demand and price dynamics.
Saudi Arabia’s crude exports saw a 0.2 percent drop to 6.297 million barrels per day, down from 6.308 million barrels per day in December. However, the country’s crude production rose to 8.956 million barrels per day from 8.944 million barrels per day in December.
In addition to export and production figures, JODI also highlighted a marginal increase in Saudi Arabia’s refinery crude throughput, rising by 0.010 million barrels per day to 2.425 million barrels per day in January. Direct crude burning also saw a modest uptick, rising by 5,000 barrels per day to 308,000 barrels per day during the same period.
OPEC+ agreement
OPEC+ agreed this month to extend voluntary output cuts of 2.2 million barrels per day in a bid to stabilize oil prices amidst fluctuating market conditions. Hence, Saudi Arabia’s decline in crude exports for the second month reflects the continuous extensions of output cuts.
Amid these developments, the International Energy Agency (IEA) revised its outlook on oil demand growth for 2024, marking the fourth consecutive upward adjustment since November. However, the IEA’s forecast remains more conservative compared to projections by OPEC.
Global demand for oil will rise by 1.3 million barrels per day in 2024, the IEA said in its latest report, up 110,000 barrels per day from last month. Meanwhile, OPEC’s latest forecast maintained demand growth unchanged at 2.25 million barrels per day.
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Market response
Earlier in the month, Saudi Arabia adjusted the official selling price of its flagship Arab Light crude to Asia for April, aligning with market expectations. These adjustments reflect the kingdom’s strategic response to evolving market dynamics and ongoing efforts to balance oil supply and demand.
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