Saudi oil exports fall to 21-month low

Saudi Arabia’s oil exports have dropped to a nearly two-year low, according to data released on Wednesday.

Saudi crude oil exports amounted to 6.8 million barrels per day (bpd) in June — the lowest figure since September of 2021 and a decrease of 124,000 bpd from the previous month, according to the Saudi-based Joint Organizations Data Initiative (JODI), which tracks energy data.

Overall crude oil production in Saudi Arabia was 9.96 million bpd in June. This figure is the lowest since November of 2021, though it was a relatively small 3,000 bpd drop from May, per JODI’s data.

Background: Saudi Arabia announced an oil production cut of 1 million barrels per day for July and later extended it to August and September as well. The Saudi- and Russia-led OPEC+ alliance of oil producers has instituted several production cuts since last year in a bid to keep prices up. With the cuts taken into account, Saudi Arabia expects its oil production to be 9 million bpd this month, according to the official Saudi Press Agency.

Russia also announced earlier this month a 300,000 bpd cut for September, following similar cuts earlier in the year. Russia also said it aimed to maintain market stability with the cuts.

Oil prices have risen for the most part since late June. The price of Brent crude oil fell below $73 at the time but rose to more than $87.50 last week. The price as of 12:40 p.m. ET on Wednesday was approximately $84.50, according to market data.

Know more: Saudi Arabia may have trouble maintaining oil market stability in the near future due to increased production from Brazil, Russian oil sales to China and several other factors, Salim A. Essaid reported for Al-Monitor last week.