Saudi Arabia’s crude oil exports rise to 3-month high

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• Less crude burned at home
• But demand slows in China
• Official selling price to Asia cut

Saudi Arabia burned 36 percent less crude oil for power generation in September – freeing up fuel for exports, which hit a three-month high.

The kingdom sold 5.75 million barrels per day in September, 80,000 bpd more than in August, according to data published this week. 

The figures are from the Joint Organisations Data Initiative, a database coordinated by the International Energy Forum in Riyadh. It compiles self-reported figures from member countries.

Saudi Arabia, the world’s top crude oil exporter, still burns considerable amounts of oil in the summer months to cool houses and businesses. It has, however, started a programme to use gas to provide power for air conditioning and industry, making more oil available for export. 

Direct burning of oil in the kingdom fell from 809,000 bpd in August to 518,000 bpd in September.

However, slowing oil demand from China is expected to weigh on Saudi revenues. During the first nine months of the year, crude oil exports from Saudi Arabia to China fell 11 percent to 1.58 million bpd, Chinese customs data shows. Saudi Aramco has now cut official selling prices to Asia for December.

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Chinese refiners are buying less crude because of falling profit margins and lower diesel oil consumption in the transport sector. 

Saudi Arabia’s oil production remained under 9 million bpd, in line with Opec+ cuts. The oil producers’ group currently keeps nearly 6 million bpd off the market. It extended the 2.2 million bpd voluntary cuts for one month until the end of December.

Last week Opec cut its forecasts for oil demand growth to 1.82 million bpd in 2024 and 1.54 million bpd for 2025.  

The International Energy Agency predicts a surplus of more than 1 million bpd in 2025, caused by lower Chinese consumption and increased non-Opec production.