Saudi Arabia Crude Production Hits Seven-Month High
In a recent report by the Joint Organizations Data Initiative, Saudi Arabia’s crude production reached a seven-month high of 9.01 million barrels per day in February. This marked a significant increase of 55,000 bpd or 0.61 percent compared to the previous month. The Kingdom’s crude exports also saw a rise to 6.32 million bpd, reflecting a monthly increase of 0.32 percent.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, decided to maintain their existing output policy unchanged in early April as oil prices hit a five-month high. Led by Saudi Arabia and Russia, OPEC+ extended voluntary output cuts of 2.2 million bpd until June to support the market, a decision reached during the 53rd meeting of the Joint Ministerial Monitoring Committee on April 3.
Due to supply constraints, attacks on Russian energy infrastructure, and conflicts in the Middle East, oil prices surged with Brent crude exceeding $89 a barrel. This extension of cuts, alongside voluntary reductions announced in April 2023, now extends through December of this year.
Despite the monthly increase in crude output, it remains approximately 14 percent lower than the levels observed during the same month last year. The next JMMC meeting is scheduled for June 1.
Refinery Output Surges to Five-Month High
Meanwhile, refinery crude output, representing the processed volume of crude oil yielding gasoline, diesel, jet fuel, and heating oil, surged to a five-month high. According to JODI data, it increased by 10 percent compared to the previous month, reaching 2.68 million bpd. This also marked a 10 percent increase from the 2.44 million bpd recorded during the same period last year.
As one of the world’s leading oil producers, Saudi Arabia plays a crucial role in supplying these refined products to meet global energy demands. In February, diesel, constituting 38 percent of the total output, declined by 7 percent to 1.02 million bpd, with its percentage share decreasing from 45 percent in January. Motor aviation or jet fuel maintained a 22 percent share, experiencing an 11 percent increase to 597,000 bpd. Meanwhile, fuel oil, making up 17 percent of the total refinery output, saw a slight uptick of 0.22 percent, totaling 455,000 bpd.
Refinery output exports surged to a 10-month high, reaching 1.39 million bpd, a 12 percent monthly increase. The most significant rise was observed in motor and aviation oil, up by 45 percent to 275,000 bpd. Fuel oil exports followed with a 38 percent increase to 219,000 bpd, while diesel oil saw a 13 percent rise to 629,000 bpd.
In February, 62 percent of refinery diesel oil output was exported, marking the highest percentage in eight months. Fuel oil and motor and aviation gasoline followed suit with export percentages of 48 percent and 46 percent, respectively.
Direct Crude Usage Sees Significant Increase
Saudi Arabia’s direct burn of crude oil, involving the utilization of oil without substantial refining processes, experienced an increase of 52,000 bpd in February, representing a 17 percent rise compared to the preceding month. The total direct burn for the month amounted to 360,000 bpd.
The Ministry of Energy 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.