Saud Arabia 7-Month Oil Output within Range
Saudi Arabia’s 1.59 billion barrels crude oil exports in the past seven months amounted to SR 657.2 billion in revenue, according to economic expert Fahad bin Jumaa.
Jumaa said that the Kingdom’s local consumption is around 535.6 million barrels, or 25% of the overall production. The oil output of Saudi Arabia is still averaging 10 million bpd (barrels per day) according to the improved Arabian Light crude’s price in the month of July versus June in combination with the continuous production decline of Iranian oil in June at 3.2 million barrels daily, according to the data from the International Energy Agency.
The oil output of Iran fell 0.62% in the month of July after the European Union imposed sanctions.
Saudi Arabia remains to be the biggest exporter of oil to China, whose exports had an increase of 26.1%, or 1.2 million barrels daily, because of the betterment of the country’s downstream industries during the month of July.
But according to the International Monetary Fund (IMF), the economy of China requires further improvements and its currency needs to be balanced again to achieve better development and lower risks.
Naif Al-Eid, an economic analyst, said that global projections will show the up and down movement of the crude price per barrel in the days to come. However, it will not fall lower than $100 a barrel, which is the preferred price of oil producing nations.
The added risk caused by Iran’s shutting down of the Hormuz Strait and the creation of incentives in the European nations and the United States will make it challenging to maintain a crude price per barrel that is lower than $100, said the analyst.
In the meantime, a Petroleum Policy Intelligence report shows a rise in Saudi Arabia’s daily oil output of 10.3 million barrels in the month of July, a growth of 445,000 versus its figures in May.
The PPI report shows that the actual production of Saudi Arabia in the month of June was 10.1 million barrels and 9.8 million barrels in May. The report also stated that the current oil prices are affected by geopolitical factors instead of technical reasons, and the decision of the OPEC nations to raise oil output together with the continuous movement of the current oil prices over $100 a barrel proves that.