Saudi Arabian crude exports are expected to drop by roughly 100,000 barrels per day (b/d) in August as the country refrains from oversuppling the market, the kingdom’s OPEC governor stated on July 19, according to Reuters.
Adeeb Al Aama stated that Saudi crude exports for the month of July would be close to those of June. No official figures for June’s exports have been released.
An industry source has stated that Saudi Arabia’s exports for June were approximately 7.2 million b/d. Official figures for May show that the kingdom exported 6.98 million b/d.
Al Aama stated that government policy is to both satisfy customer needs and to comply with the OPEC and non-OPEC supply agreements.
“Despite the international oil markets being well balanced in the third quarter, there will still be substantial stock draws due to robust demand and seasonality factors in the second half,” Al Aama stated.
“Stable and balanced markets are the ideal market form for both producers and consumers, and just as Saudi Arabia would not like to see unmet customer demand, an oversupplied market repels potential investment in the oil industry, curtailing future supply and contributing to volatility,” he added.
Saudi Arabia reported to OPEC that it produced 10.488 million b/d of crude in June, a 458,000 b/d increase from May.