RIYADH: Saudi Arabia’s refinery crude exports increased by 12 percent in June compared to the previous month, reaching 1.37 million barrels per day, according to new data.
Figures released by the Joint Organizations Data Initiative show that these products mainly included processed crude used for producing diesel, motor and aviation gasoline, and fuel oil.
Diesel comprised 51 percent of refined product exports, while motor and aviation gasoline accounted for 21 percent and fuel oil represented 8 percent.
The output of refinery oil products totaled 2.5 million bpd, reflecting a 17 percent reduction from the previous month.
Diesel held the largest share of this mix at 46 percent, followed by motor and aviation gasoline at 27 percent and fuel oil at 18 percent.
JODI data revealed that Saudi Arabia’s crude exports were lowered to 6.05 million bpd in June, a 1.16 percent decrease compared to the previous month.
Figures also indicated that the Kingdom’s crude production was reduced to 8.8 million bpd, marking a 1.81 percent decrease during this period.
Domestic demand for petroleum products in Saudi Arabia also rose by 391,000 bpd to 2.75 million bpd.
Since late 2022, OPEC+ has implemented significant output cuts, and members are currently reducing production by 5.86 million bpd, representing approximately 5.7 percent of global demand.
In June, OPEC’s oil production averaged 26.98 million bpd, marking a modest decline of 80,000 bpd from the previous month, as reported by a Bloomberg survey. This decrease was primarily attributed to reduced output in Iraq and Nigeria.
Iraq and the UAE have not fully implemented agreed production cuts, with Iraq still exceeding its quota by 250,000 bpd.
Despite these challenges, OPEC and its allies, led by Saudi Arabia, have managed to stabilize global oil markets, with Brent crude trading near $87 per barrel.
In an online meeting on Aug. 1, OPEC+ ministers confirmed their current oil output policy, which includes gradually reversing some production cuts from October.
The plan, however, could be adjusted or halted depending on market conditions.
The Joint Ministerial Monitoring Committee did not introduce new recommendations, so the planned production increase of 2.2 million bpd from the fourth quarter of 2024 to the third quarter of 2025 remains in place.
Iraq, Kazakhstan, and Russia assured compliance with production limits and submitted compensation plans for previous overproduction.
The next JMMC meeting is scheduled for October 2, with the next OPEC and non-OPEC Ministerial Meeting set for Dec. 1.
Direct crude usage
Saudi Arabia’s direct burn of crude oil, involving the utilization of refining processes, experienced an increase of 160,000 bpd in June, representing a 40.2 percent increase compared to the preceding month. The total direct burn for the month amounted to 558,000 bpd.
This is likely due to the increased demand for electricity to power air-conditioning systems. As temperatures soar during the summer in Saudi Arabia, the need for cooling intensifies, resulting in higher electricity consumption.
Compared to June last year, direct crude usage increased by 15,000 bpd, a 3 percent rise.
The Ministry of Energy aims to enhance the contributions of natural gas and renewable sources as part of the Kingdom’s goal to achieve an optimal, highly efficient, and cost-effective energy mix.
Saudi Arabia will conduct the world’s largest renewable energy survey, involving the installation of 1,200 measuring stations across 850,000 sq. km of land, according to an official release in June.
This Geographic Survey Project, inaugurated by Minister of Energy Prince Abdulaziz Al-Saud, aims to identify optimal sites for solar and wind power.
It is a key part of the National Renewable Energy Program, which seeks to achieve a 50 percent renewable energy share by 2030 and replace 1 million bpd of liquid fuels.
In 2024, Saudi Arabia will launch new renewable projects targeting a capacity of up to 130 gigawatts 2030. The survey will provide comprehensive data to support efficient land allocation and enhance investment attractiveness in the sector.
