Saudi Arabia’s crude oil exports fell for a third consecutive month in May, reaching a record low, according to data released by the Joint Organizations Data Initiative (JODI) on Tuesday, as the Iran-Israel conflict disrupted shipments across the Arabian Gulf.
Saudi crude exports declined to 3.434 million barrels per day (mmbbl/d) in May, down from 3.986 mmbbl/d in April.
Despite the decline in exports, the Kingdom’s crude oil production recovered to 6.560 mmbbl/d in May from the record low of 6.316 mmbbl/d recorded in April.
JODI’s data series for Saudi Arabia’s crude oil exports and production dates back to 2002, the earliest period for which records are available. Saudi Arabia, along with other members of the Organization of the Petroleum Exporting Countries (OPEC), submits monthly production and export data to JODI for publication.
“The drop in Saudi exports was likely still influenced by the conflict in the Middle East, but higher domestic crude burn is likely another factor limiting crude exports,” UBS analyst Giovanni Staunovo said.
The data also showed that Saudi Arabia’s refinery crude throughput increased by 0.175 mmbbl/d to 2.386 mmbbl/d in May, compared with 2.211 mmbbl/d in April. Direct crude burning also rose by 0.107 mmbbl/d to 0.647 mmbbl/d.
On the geopolitical front, Yemen’s Iran-aligned Houthis announced on Monday that they would impose a naval blockade on Saudi Arabia, potentially opening a new front against the US in its conflict with Iran and increasing risks to global energy supplies and trade beyond the Arabian Gulf.
In response, Saudi Arabia’s Ministry of Foreign Affairs rejected the Houthi allegations that the Kingdom was besieging Yemen and enforcing a maritime blockade. The ministry said Saudi Arabia would take “all necessary measures” to protect its vessels.
Meanwhile, the International Energy Agency (IEA) expects global oil supply to expand by 7.5 mmbbl/d next year following a contraction of 3.7 mmbbl/d this year, although the outlook depends on increased shipping activity through the Strait of Hormuz.
