Saudi Arabia’s crude oil exports dropped in June to the lowest level in 21 months, the latest data by the Joint Organizations Data Initiative (JODI) showed on Wednesday.
The Kingdom, the world’s top crude oil exporter, shipped 6.80 million barrels per day (bpd) of crude in June, down by 124,000 bpd compared to May, according to JODI, which compiles self-reported data from many countries.
In May, Saudi Arabia’s oil exports plunged below 7 million bpd for the first time this year as the Kingdom and several other large OPEC+ producers began a collective cut of 1.6 million bpd in May.
Per the JODI data released today, Saudi Arabia’s product inventories fell by 1.64 million barrels in June, while crude inventories built by 1.45 million barrels.
Direct use of crude in direct burn for power in Saudi Arabia rose by 65,000 bpd to 543,000 bpd in June, per the JODI data.
In June, Saudi Arabia’s crude oil production inched down by 3,000 bpd to 9.96 million bpd, the JODI data showed today. This was the lowest level of Saudi crude output in 19 months.
Saudi oil production is set to average around 9 million bpd in July, August, and September after the Kingdom started a unilateral voluntary cut of 1 million bpd in July, “to support the stability of the oil market.” The unilateral cut was initially set to last in July, but was extended two times, once into August, and later into September.
Oil supply from the OPEC+ group dipped in July by 1.2 million bpd to 50.7 million bpd, the lowest level in nearly two years as Saudi Arabia began its production cut of 1 million bpd, the International Energy Agency (IEA) said last week.
Due to Saudi Arabia’s cut, the Kingdom’s crude oil production has now fallen below the production of Russia, the key partner of OPEC in the OPEC+ alliance.
By Tsvetana Paraskova for Oilprice.com
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