Saudi Arabia significantly boosted its crude oil exports by 412,000 barrels per day (bpd) in April, marking a notable rise from March’s figures. The latest data from the Joint Organizations Data Initiative (JODI) reveals that the kingdom, the world’s top crude exporter, averaged exports of 6.17 million bpd during the month. This data is based on self-reported figures from individual countries.
According to JODI, Saudi Arabia also increased its crude oil production by approximately 48,000 bpd in April, reaching a production level of 8.96 million bpd. The rise in exports was partially facilitated by a decrease in domestic refinery intake, allowing more barrels to be available for international markets. This change comes as part of the OPEC+ strategy to gradually unwind 2.2 million bpd in production cuts that had been implemented to stabilize global oil prices during the pandemic.
OPEC+ Production Strategy
The OPEC+ group, which includes major oil-producing countries such as Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, reported a modest production increase of 138,000 bpd in April. However, the group has since opted for a more aggressive approach, raising production quotas by 411,000 bpd for May, June, and July. Surprising the markets, OPEC+ announced an even larger increase of 548,000 bpd for August, surpassing expectations and setting the stage to unwind all cuts nearly a year ahead of schedule.
Looking ahead, a further increase of 550,000 bpd is anticipated for September. This strategy aims to remove the remaining 2.2 million bpd cuts, although some 1.6 million bpd of other cuts will remain in effect until the end of 2026. These decisions reflect OPEC+’s confidence in recovering global oil demand.
Domestic Considerations
Despite the rise in production, Saudi Arabia’s crude oil exports may not surge as dramatically during the summer months. The country often redirects crude oil for direct burning in power plants to meet the high energy demand driven by air conditioning needs in its scorching climate. This seasonal domestic consumption pattern could temper the growth in exports, even as overall production capacity continues to expand.
This article was contributed by Tsvetana Paraskova for Oilprice.com, providing insights into Saudi Arabia’s strategic moves within the global oil market.
