Saudi Arabia cuts oil exports 6% in month

Saudi Arabia cut oil exports sharply this month as the kingdom delivers on an OPEC+ agreement to shore up global crude markets.

Saudi shipments were down about 430,000 barrels a day, or roughly 6%, by mid- November compared with the previous month, according to data from energy analytics firm Kpler Ltd. An even bigger slump of 676,000 barrels a day was observed by another consultant, Vortexa Ltd.

The kingdom, which leads OPEC+ with Russia, is fully committed to the agreement struck early last month to cut oil production by 2 million barrels a day, according to an official who asked not to be identified. The cut represents 2% of global production.

“Saudi Arabia is cutting a lot, going down for a second straight month,” said Viktor Katona, an analyst at Kpler in Vienna.

President Joe Biden slammed Riyadh, the capital of Saudi Arabia, and its partners last month, saying the planned cut endangers the global economy and aids Russia with its war in Ukraine.

Oil- market trends have since given the decision some vindication. Crude prices have retreated about 4% this week to near $90 a barrel amid a fragile backdrop for demand.

Saudi Energy Minister Prince Abdulaziz bin Salman defended the cutbacks last week at the COP27 climate talks in Egypt, saying they were needed to offset extreme economic uncertainties.

He said the group would remain “cautious.” The kingdom has often sought to lead OPEC+ by example, swiftly delivering its pledged curbs — or even exceeding them — to encourage other members to follow.

Exports from OPEC’s 13 members are down “very significantly in the first half of November, by more than 1 million barrels a day,” said Daniel Gerber, CEO of tanker-tracker Petro-Logistics in Geneva.