Arab News, Thu, Apr 18, 2024 | Shawwal 9, 1445
Saudi crude production hits 7-month high in February
Saudi Arabia:
Saudi Arabia’s crude production reached a seven-month high of 9.01 million
barrels per day in February, data from the Joint Organizations Data Initiative
showed.
This represented a rise of 55,000 bpd or 0.61
percent compared to the previous month.
Furthermore, the data indicated that the Kingdom’s
crude exports rose to 6.32 million bpd, reflecting a monthly increase of 0.32
percent.
In early April, the Organization of the Petroleum
Exporting Countries and its allies, known as OPEC+, chose to keep their existing
output policy unchanged as oil prices hit a five-month high.
Led by Saudi Arabia and Russia, OPEC+ extended
voluntary output cuts of 2.2 million bpd until June to bolster the market. The
decision was reached during the 53rd meeting of the Joint Ministerial Monitoring
Committee on April 3.
Oil prices surged due to supply constraints,
attacks on Russian energy infrastructure, and conflicts in the Middle East, with
Brent crude exceeding $89 a barrel.
This extension of cuts, alongside voluntary
reductions announced in April 2023, including 500,000 bpd cuts from both Saudi
Arabia and Russia, now extends through December of this year.
As a result of this decision, despite the monthly
increase, crude output remains approximately 14 percent lower than the levels
observed during the same month last year.
The next JMMC meeting is scheduled for June 1.
Refinery output
Meanwhile, refinery crude output, representing the
processed volume of crude oil yielding gasoline, diesel, jet fuel, and heating
oil, surged to a five-month high. It increased by 10 percent compared to the
previous month, reaching 2.68 million bpd, according to JODI data. This also
marked a 10 percent increase from the 2.44 million bpd recorded during the same
period last year.
As one of the world’s leading oil producers, Saudi
Arabia plays a crucial role in supplying these refined products to meet global
energy demands.
In February, diesel, constituting 38 percent of
the total output, declined by 7 percent to 1.02 million bpd, with its percentage
share decreasing from 45 percent in January. Motor aviation or jet fuel
maintained a 22 percent share, experiencing an 11 percent increase to 597,000
bpd. Meanwhile, fuel oil, making up 17 percent of the total refinery output, saw
a slight uptick of 0.22 percent, totaling 455,000 bpd.
Conversely, refinery output exports surged to a
10-month high, reaching 1.39 million bpd, a 12 percent monthly increase. The
most significant rise was observed in motor and aviation oil, up by 45 percent
to 275,000 bpd. Fuel oil exports followed with a 38 percent increase to 219,000
bpd, while diesel oil saw a 13 percent rise to 629,000 bpd.
In February, 62 percent of refinery diesel oil
output was exported, marking the highest percentage in eight months. Fuel oil
and motor and aviation gasoline followed suit with export percentages of 48
percent and 46 percent, respectively.
Direct crude usage
Saudi Arabia’s direct burn of crude oil, involving
the utilization of oil without substantial refining processes, experienced an
increase of 52,000 bpd in February, representing a 17 percent rise compared to
the preceding month. The total direct burn for the month amounted to 360,000
bpd.
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.
This involves replacing liquid fuel with natural
gas and integrating renewables to constitute approximately 50 percent of the
electricity production energy mix by 2030.