Saudi Arabia’s Oil Production Down 200,000 b/d in July

Thursday, 1st August 2019
by Editorial Team

Haradh, SAUDI ARABIA: A general view shows a new plant inaugurated 22 March 2006 in Haradh, about 280 kms (170 miles) southwest of the eastern Saudi oil city of Dhahran, launching a project adding 300,000 barrels of oil to the kingdom’s daily production capacity. The facility which was opened today in a ceremony attended by Saudi Oil Minister Ali al-Nuaimi was completed in January, ahead of schedule, the company said. Approximately 160 kms (100 miles) of new pipeline and extensions will transport crude and gas products to processing facilities further north in the Eastern Province, a statement said. Saudi Arabia, the world’s top crude producer and exporter, currently pumps around 9.5 million bpd of oil and has a production capacity of around 11 million bpd. AFP PHOTO/STR (Photo credit should read -/AFP/Getty Images)

Saudi Arabia’s oil production fell to 9.6 million barrels per day (b/d) in July and is expected to stay below the 10 million b/d level in the coming months, Reuters reported.

The kingdom’s crude output decreased by around 200,000 b/d compared with June.

Saudi production quota under the production cut agreement, sponsored by the Organization of the Petroleum Exporting Countries (OPEC), is at 10.3 million b/d. However, Saudi Arabia seeks to reduce oil inventories.

OPEC’s production fell to a new five-year low in June recording 29.6 million per day (b/d), down by 170,000 b/d compared with May, its lowest level since April 2014.

The output cut deal was recently extended until the end of March 2020 to maintain the global oil market balance.