RIYADH: Saudi Arabia’s crude oil production hit a seven-month high of 9.01 million barrels per day in February, according to data from the Joint Organizations Data Initiative.
This represents an increase of 55,000 bpd or 0.61% from the previous month.
Furthermore, the data indicates that the Kingdom’s crude exports increased to 6.32 million bpd, reflecting a monthly increase of 0.32 percent.
In early April, the Organization of the Petroleum Exporting Countries and its allies OPEC+ opted to keep their current production policy unchanged as oil prices hit a five-month high.
Led by Saudi Arabia and Russia, OPEC+ extended voluntary production cuts of 2.2 million bpd until June to support the market. The decision was taken during the 53rd meeting of the Joint Ministerial Monitoring Committee on April 3.
Oil prices have surged due to supply constraints, attacks on Russian energy infrastructure and conflicts in the Middle East, with Brent crude surging above $89 a barrel.
This extension of cuts, alongside voluntary reductions announced in April 2023, including the 500,000 bpd cuts from Saudi Arabia and Russia, now extends until December this year.
As a result of this decision, despite the monthly increase, gross production remains around 14 percent lower than levels observed in the same month last year.
The next CGSM meeting is scheduled for June 1.
Refinery production
Meanwhile, refinery crude oil production, which represents the processed volume of crude oil producing gasoline, diesel, jet fuel and heating oil, hit a five-month high. It rose 10% from the previous month, reaching 2.68 million bpd, according to JODI data. This also marked a 10 percent increase from the 2.44 million bpd recorded during the same period last year.
As one of the world’s leading oil producers, Saudi Arabia plays a crucial role in supplying these refined products to meet global energy demand.
In February, diesel, which accounts for 38% of total production, fell by 7% to 1.02 million barrels per day, its share having increased from 45% in January. Motor aviation or jet fuel retained a 22% share, with an increase of 11% to 597,000 bpd. Meanwhile, fuel oil, which accounts for 17 percent of the refinery’s total production, saw a slight increase of 0.22 percent, totaling 455,000 bpd.
Conversely, refinery exports hit a 10-month high, reaching 1.39 million barrels per day, a monthly increase of 12%. The most significant increase was seen in engine and aviation oils, up 45 percent to 275,000 bpd. Fuel oil exports followed with a 38 percent increase to 219,000 bpd, while diesel saw a 13 percent increase to 629,000 bpd.
In February, 62% of refinery diesel production was exported, the highest percentage in eight months. Fuel oil and automotive and aviation gasoline followed suit with export percentages of 48% and 46% respectively.
Direct use of crude
Saudi Arabia’s direct consumption of crude oil, involving the use of oil without a substantial refining process, saw an increase of 52,000 bpd in February, an increase of 17 percent from the previous month. Total direct combustion for the month was 360,000 bpd.
The Ministry of Energy aims to strengthen the contributions of natural gas and renewable sources as part of the Kingdom’s goal of achieving an optimal, highly efficient and cost-effective energy mix.
This involves replacing liquid fuel with natural gas and integrating renewable energies to constitute around 50% of the energy mix for electricity production by 2030.
This text is the translation of an article published on Arabnews.com
