• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 16 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 10 hours Will Uncle Sam Step Up and Cut Production
  • 8 mins Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 day Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 11 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 14 hours Continental Resource's Hamm (Trump Buddy) wants shale to cut production.Can't compete with peers. Stock will drop in half again.
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 3 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 7 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 2 days I think I might be wrong about a 2020 shakeout
  • 2 days Kremlin Says WTO's Existence Would Be In Doubt If the U.S., Others Left
  • 1 day Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 51 days To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
A New War In Yemen

A New War In Yemen

The most recent development in…

Saudi Arabia Continues To Cut Crude Oil Exports  

Aramco pipeline

Saudi Arabia’s crude oil exports continued to fall at the start of this year after OPEC’s largest producer started to aggressively cut oil supply in December last year to prevent another glut, while the Kingdom signals that further cuts are coming.

According to data by the Joint Organisations Data Initiative (JODI) database, which collects self-reported figures from 114 countries, Saudi crude oil exports dropped to 7.254 million bpd in January, down from 7.687 million bpd in December 2018.

During the last month of 2018, OPEC’s de facto leader and the cartel’s key ally Russia realized their preemptive production ramp-up to meet a steep Iranian export shortfall would create another glut if they don’t implement another round of cuts, which they did, starting in January.

Saudi Arabia’s crude oil exports plunged by nearly 550,000 bpd to 7.687 million bpd in December, down from a two-year high in November, as the Kingdom started to limit supply after the U.S. granted waivers to eight Iranian customers and the market swung into oversupply. 

In November, Saudi Arabia’s crude oil exports had jumped by 534,000 bpd month on month to 8.24 million bpd—the highest level in two years after the Saudis boosted supply to the market to offset supply losses from Iran with the return of the U.S. sanctions on Tehran’s oil industry.

Related: Oil Rises As OPEC Holds Off On Production Cuts Decision

Last week, Saudi Arabia signaled that it is determined to do ‘whatever it takes’ to rebalance the market and support oil prices by keeping its April crude oil exports at below 7 million bpd, despite requests for more than 7.6 million bpd of Saudi oil from its customers. The lower allocations by Saudi Aramco for April will also mean that the Kingdom’s oil production will be “well below 10 million bpd” in April, a Saudi official told Reuters.

In an interview with the Financial Times in February, Saudi Arabia’s Energy Minister Khalid al-Falih said that the Saudis would cut production to around 9.8 million bpd in March, some 500,000 bpd below the commitment in the OPEC+ deal. Al-Falih also said that Saudi Arabia would be cutting its crude oil exports to near 6.9 million bpd this month, slashed from the November high of 8.2 million bpd.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Tripp Mills on March 19 2019 said:
    WAY TO GO SAUDI/OPEC! Go Saudi/OPEC Go! No one complaining if prices rise as Saudi/OPEC will balance the world oil markets and the U.S. I know is helping all we can! Anyone complaining needs to realize we can not and will not bankrupt our own energy industry (offshore, green/clean, etc.) - Saudi Arabia is doing so many great things in this area as well so if anyone complains, I will take an ad out myself to support them! Mass transit is available - Atlanta - we love our MARTA and we love our Mayor (thank you Mayor for doing such a great job!). Best, Tripp

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play