DUBAI: Saudi Arabia supplied less crude oil to the market in September than a month earlier, an industry source said on Thursday, at a time when some OPEC members are calling on the Kingdom to cut back output to lift prices.
Brent rose above $85 a barrel on the news, though it was still trading not far from its lowest in four years.
Crude supplies from Saudi Arabia fell by some 328,000 barrels per day, to 9.36 million bpd in September, from 9.688 million bpd in August, the source said.
Supply to the market — both domestically and for exports — may differ from production depending on the movement of barrels in and out of storage.
The source did not give a reason for the drop in crude supply in September. But the kingdom typically burns less crude for power generation when the weather starts to cool, which may free up more oil for export in the coming months, analysts say.
Saudi oil use for power generation fell to 769,000 bpd in August, from 899,000 in July, according to official figures released earlier this week.
The fall in September’s crude supplies might have also been a way to compensate for the extra barrels taken out of storage in August when Saudi’s supplies were higher than its output. September output was 9.70 million bpd, up from 9.597 million bpd in August.
“I don’t interpret this as a move to tighten up the market. That wouldn’t make sense ahead of the OPEC meeting,” said Bjarne Schieldrop, chief commodity analyst at SEB in Oslo.
“Saudi Arabia does not want to make any substantial cuts on its own.”
Few OPEC members would want the most influential member of the group to cut production to support oil prices, a failed policy that Riyadh has taken in the 1980s but is unwilling to go down the same road again now.
OPEC’s Gulf producers can tolerate lower prices. Saudi Arabia has been quietly signaling that it is comfortable with prices below $90 and has been slashing its crude prices to Asian customers to compete for market share.
Sources have indicated that Riyadh was unwilling to shoulder any output cut unilaterally and that any cut has to be a collective one by all OPEC members.
Saudi Arabia is likely to keep its oil production steady throughout the rest of the year as world oil consumption is expected to rise and domestic demand for crude to ease during the winter, an industry source said last month.
Saudi crude exports fell in August to 6.663 million bpd for the fourth month in a row to their lowest levels in three years, as Saudi Arabia fights for market share amid weak demand and ample supplies from rival producers.
September exports figures were not available yet on the website of the Joint Organizations Data Initiative (JODI).
Industry observers see Saudi crude output at around 9.5 million to 9.6 million bpd in the coming months when seasonal demand picks up.
˝Saudi exports will probably stay around 6.9 million to 7.1 million bpd until December, they say.
Saudi crude exports have been sliding in the past few months as shale oil squeezes its oil out of US markets and as demand in Asia, particularly in China, has been slower than expected.
OPEC meets to review policy on Nov. 27. So far Gulf members of the Organization of the Petroleum Exporting Countries have indicated their reluctance to cut output to lift prices.
Libya’s OPEC governor told Reuters on Wednesday that OPEC should cut its oil output by at least 500,000 bpd. But Libya is the only one of four African OPEC members calling for a supply cut.
Iran, in a shift of tack, has said it also can live with lower oil prices, reducing the likelihood of any collective cut in OPEC output to support prices.
Saudi Arabia supplies less oil in September despite output rise
Saudi Arabia supplies less oil in September despite output rise
Six vital sectors drawing US investors to Saudi Arabia
RIYADH: Six vital sectors are drawing US investors, including entrepreneurs and small businesses, to Saudi markets as the Kingdom continues to develop its regulatory framework and foster innovation, Deborah Lehr, interim CEO of the Meridian International Center, said in an interview with Al-Eqtisadiah.
Lehr, who is heading a trade and investment delegation to Saudi Arabia in her capacity as an economic advisor affiliated with the White House, stated that the six sectors include hospitality, luxury goods, and tourism, as well as culture, technology, and others.
She noted that Saudi Arabia has significantly eased the process for foreign companies to establish a presence, a critical factor for small and medium-sized enterprises that may not yet have the scale to expand, making the Kingdom an attractive market for both large and innovative small companies.
Following the success of the Saudi Crown Prince’s recent visit to Washington, she said, Meridian organized a US trade delegation to explore tangible and growing opportunities for US businesses in Saudi Arabia.
Translating Vision 2030 priorities into real partnerships
The delegation, which included representatives from Delta, Intel, Pernod Ricard, and Basilinna, among others, met a wide range of government officials, private-sector leaders, and entrepreneurs to explore how US companies can participate in Saudi market growth.
According to Lehr, discussions were practical and forward-looking, focusing on translating Vision 2030 priorities into real business partnerships.
She highlighted that most of the companies in the delegation were large enterprises operating across various sectors, underscoring the diversity of businesses active in Saudi Arabia.
She pointed out that these companies joined the mission because they see the potential to scale their operations in Saudi Arabia — whether by increasing flight routes, enhancing airport security, offering advisory services to firms entering the Saudi or US markets, or exploring opportunities in the beverage sector.
Relationship increasingly taking economic dimension
Lehr hinted to the Saudi minister of investment that the US-Saudi relationship is also increasingly taking on an economic dimension.
She noted that bilateral trade stands at around $40 billion, compared with Saudi-China trade of approximately $110 billion, highlighting untapped growth potential between the two countries, especially as diplomatic and political ties continue to strengthen.
She said the reforms present valuable opportunities for US companies across multiple sectors, including advanced manufacturing, technology and logistics, as well as aviation, tourism and culture, alongside a wide range of services.
With the regulatory environment being modernized and business stability increasing, the scope of US investment is set to expand further. More importantly, she added, the greater the engagement of companies, the stronger and more resilient the bilateral relationship will become in the years ahead.
She emphasized that Saudi Arabia has undergone deep social and economic transformations, including increased female participation in the workforce and entrepreneurship, while emerging as a cultural hub with a thriving arts scene and new platforms for creative expression.
Lehr further said that the world will witness growing global interest from companies and institutions eager to be part of Saudi Arabia’s remarkable transformation, amid increasing openness and a willingness to share its history, culture, and ambitions with the world.
Saudi agenda offers tangible opportunities
Lehr highlighted that during her visit, she focused on three key economic priorities. The first is Saudi Arabia’s strategic shift of capital from the oil and gas sector toward technology and innovation, a move that signifies not only economic diversification but also the Kingdom’s emergence as a globally competitive player.
Second, the Kingdom’s reform agenda has provided tangible opportunities for foreign companies, reflecting real changes that facilitate international participation in Saudi growth.
The third point she focused on was that the strong geopolitical and economic ties between the US and Saudi Arabia have bolstered investor confidence. As the Kingdom strengthens its global role and deepens relationships with partners such as the US, its attractiveness for long-term foreign direct investment continues to grow.
She noted that sectors such as artificial intelligence, gaming and entertainment, advanced manufacturing, and the technology ecosystem are areas in which the US has strong competitive advantages, at a time when US firms are seeking new markets that offer stability and long-term potential.
Giga-projects in Saudi Arabia, including AlUla and NEOM, have attracted global attention and highlighted emerging opportunities across the country.
These projects demonstrate the Kingdom’s ambitious vision and its creation of entirely new sectors rather than merely expanding existing ones.
