Saudi Arabia, the world’s leading crude oil exporter, saw its oil exports rise to a three-month high in October 2024. According to data from the Joint Organizations Data Initiative (JODI), the Kingdom exported 5.92 million barrels per day (bpd) of crude, an increase of 174,000 bpd from September.
Production and Refinery Insights
Despite the increase in exports, Saudi Arabia’s crude oil production slightly decreased by 3,000 bpd, averaging 8.972 million bpd in October. Refinery activities also dipped, with runs dropping to 2.737 million bpd. Additionally, the direct burning of crude oil for power generation fell significantly by 156,000 bpd to 362,000 bpd as the country transitioned out of its hottest months.
OPEC+ Production Cuts Extended
Saudi Arabia continues to play a significant role in the OPEC+ alliance, which recently decided to delay the easing of its 2.2 million bpd production cuts until April 2025. The cuts, originally set to phase out by January 2025, will now extend into September 2026.
Beyond its role in OPEC+, Saudi Arabia is also voluntarily cutting an extra 1 million bpd to support oil prices. However, these efforts have yet to yield significant price increases this year due to weaker-than-expected global oil demand, particularly in China.
Challenges Ahead for Oil Markets
Looking forward, analysts predict modest growth in oil demand for 2025, which may complicate OPEC+ strategies for balancing the market. Meanwhile, non-OPEC+ producers like the U.S., Brazil, and Guyana are expected to boost their output, potentially reducing OPEC’s market share.
A Shifting Market Landscape
Saudi Arabia’s efforts reflect its commitment to stabilising the oil market, even as global challenges persist. The rise in exports and sustained production adjustments demonstrate the Kingdom’s focus on maintaining its leadership role in the energy sector while navigating a complex and evolving market environment.