Saudi Arabia’s crude exports fell to levels of 2 years ago due to reduced production

The oil exports by Saudi Arabia during August they registered a drastic reduction, just at a time when the kingdom is leading an effort within the OPEC+ to reduce its production and stimulate crude oil prices.

According to data provided by Bloomberg, observed volume contracted to approximately 5.6 million barrels per day, marking the lowest level since March 2021.

This figure is in stark contrast to the revised 6.3 million barrels per day for July. In addition, shipments to most major destinations, including China and the United States, fell to low levels not seen for several years.

Along these lines, oil flows to China, which is the main market for Saudi Arabia, experienced a significant drop, reaching approximately 1.3 million barrels per day. This level is the lowest recorded since June 2020, during the first months of the pandemic, when demand for oil plummeted around the world. Likewise, Saudi exports to Japan and South Korea in August reached their lowest levels since Bloomberg began tracking this data in 2017.

Shipments to the west also suffered a sharp decline. Deliveries to the United States were down to just 81,000 barrels a day, marking the lowest volume seen in at least six years.

However, it is important to note that this situation could change, as the ships carrying approximately 24 million barrels of Saudi crude loaded last month have yet to signal their final destination. This suggests that the numbers for shipments to specific destinations, particularly long-haul ones, are likely to increase in the coming weeks.

Finally, along with Saudi Arabia, shipments from Kuwait, OPEC’s fifth-largest producer, also fell to about 1.5 million barrels per day, the lowest level since at least the end of 2016.

With information from Bloomberg.