Saudi oil exports reach highest level in 7 months
Gasoline, diesel demand recovers in KSA, yet remain below pre-pandemic levels
Saudi Arabia’s crude oil exports rose in August to its highest level in seven months, according to data released by the Joint Organisations Data Initiative on Monday.
Some 6.45 million barrels per day was shipped from the Kingdom in August, a rise from 6.327 million bpd recorded in July.
Crude oil production also saw a slight increase in August, rising to 9.562 million bpd up from 9.474 million bpd in July. In annual terms, crude oil output experienced a jump of 6.4 percent in August.
The Kingdom’s crude oil exports underwent a similar trend as it grew by an annual rate of 8.1 percent.
The direct use of crude oil, which measures oil usage for generating electricity, fell in August to 0.654 million bpd. According to Jodi data, this is less than the 0.691 million bpd reached in July.
This also marks an annual decline of 6.8 percent in oil burned for electricity generation.
Moreover, Saudi Arabia’s crude stock diminished marginally as well to 133.16 million barrels in August, down from 135.11 million barrels in July. This reflected a yearly decline rate of 8.5 percent in crude stock as well.
Demand
Average motor and aviation gasoline demand jumped to 470,000 barrels per day (kbd) in 2021, compared to 455 kbd in 2020, data compiled by Arab News from Jodi revealed.
Calculations made for 2021 were up to August, the year’s latest data point so far.
This reflects a recovery in gasoline demand as the effects of the pandemic start to taper off. However, demand is still below pre-pandemic levels. Average gasoline demand used to comfortably cross 500 kbd before 2020.
Still, data for 2021 is incomplete and a 12-month dataset might lead to a different conclusion.
Motor and aviation gasoline demand in Saudi Arabia reached 471 kbd in August. This is a marginal decline in demand from the previous month’s 473 kbd. In annual terms, demand this year also recorded a 9 kbd fall compared to last year’s August demand which stood at 480 kbd.
Similarly, the Kingdom’s average diesel demand slightly increased to 497 kbd in 2021, up from 492 kbd in 2020. Nevertheless, it is still below pre-2020 levels. In 2017-19, average diesel demand
was above the 520 kbd mark.
Oil prices
Oil prices pulled back after touching multiyear highs on Monday, trading mixed as US industrial output for September fell, tempering early enthusiasm about demand.
Brent crude oil futures were down 20 cents or 0.24 percent at $84.66 a barrel by 11:46 a.m. EST (1546 GMT) after hitting $86.04, their highest since October 2018.
US West Texas Intermediate crude futures were 17 cents higher, or 0.2 percent, at $82.46 a barrel, after hitting $83.87, their highest since October 2014.
Both contracts rose by at least 3 percent last week.