Saudi Arabia, the world’s largest crude oil exporter, shipped 5.92 million bpd of crude to customers in October, up by 174,000 bpd compared to September.
This was the highest average export volume from Saudi Arabia for three months, according to the JODI database which compiles self-reported figures from individual countries.
Meanwhile, Saudi Arabia continues to stick to its pledge to pump “around 9 million bpd”. Crude oil production inched down by 3,000 bpd to average 8.972 million bpd in October, per the data the Kingdom has reported to JODI.
Refinery runs fell slightly to 2.737 million bpd, while direct crude burning for power generation continued to drop as the hottest months in the desert Kingdom ended. Direct crude burn slumped by 156,000 bpd to 362,000 bpd, according to the data in JODI.
Saudi Arabia and its partners in the OPEC+ group earlier this month decided to delay the start of the easing of the 2.2 million bpd cuts to April 2025, from January 2025. The group also extended the period in which it would unwind all these cuts into the following year, until September 2026.
Saudi Arabia is not only shouldering the largest volume of the OPEC+-wide cuts as a top producer, but it is also cutting production by another 1 million bpd in a unilateral move.
All these cuts have failed to boost oil prices this year, due to weaker-than-expected oil demand, especially in China.
Oil demand growth is expected to remain fairly modest next year, which could further complicate the exit strategy of Saudi Arabia and the OPEC+ alliance, analysts say.
At the same time, supply from non-OPEC+ producers, including the U.S., Brazil, and Guyana, is set to increase and further erode OPEC’s market share.
