Saudi exports surged in October on the back of higher oil prices, which hit a 2021 peak during that month.
Saudi Arabia exported goods and commodities worth a total $28 billion in October, according to the Kingdom’s General Authority for Statistics, as cited by Bloomberg. Crude oil accounted for 77.6 percent of total exports in that month, up from 66.1 percent a year earlier. The value of total exports was almost double that for October 2020.
The value of oil exports alone was 123 percent higher in October 2021 from a year ago, the statistics authority also said, while the value of non-oil exports rose by 25.5 percent.
One of the world’s top oil exporters has reaped the full benefits of recovering demand for oil this year, upping both its exports and selling prices, despite lingering worries about the pandemic.
Even as the latest coronavirus variant caused fears of new lockdowns and other restrictions, Saudi Arabia raised its official selling prices for oil for Asian buyers and by a hefty $0.60 per barrel.
The decision to hike prices demonstrates confidence that demand for oil will remain robust despite the pandemic. The confidence was also highlighted earlier this month when OPEC+ decided to add another 400,000 bpd to combined production in January despite the U.S. administration’s decision to release up to 50 million barrels of crude in a bid to lower retail fuel prices.
Thanks to higher oil prices, the Kingdom’s Finane Minister said earlier this month it expected to book its first budget surplus in a decade next year. Despite the contribution of oil to this forecast performance of the Saudi economy, the Kingdom will remain on its diversification course, Al-Jadaan also said, and it will also remain disciplined about public spending.
For this year, the ministry of finance expects GDP growth of 2.9 percent, to rise to 7.4 percent in 2022.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
- Saudi Arabia Doubles Down On Asian Demand
- Big Money Is Eyeing Metals Over Oil As Mining Assets Soar
- Southeast Asia’s Oil And Gas Output May Never Recover To Pre-COVID Levels