Saudi crude oil exports, output rise in June

Oil hit a six-month low after a brief rally as concerns about the prospect of a global recession



Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia. Production in June rose to its highest level in over two years, to 10.646 million bpd from 10.538 million bpd in May. — Reuters file photo
Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia. Production in June rose to its highest level in over two years, to 10.646 million bpd from 10.538 million bpd in May. — Reuters file photo

By Reuters

Published: Wed 17 Aug 2022, 5:17 PM

Saudi Arabia’s crude oil exports rose in June, while output increased to a more than two-year high, data from the Joint Organizations Data Initiative (JODI) showed on Wednesday.

Crude exports in June rose about two per cent to 7.196 million barrels per day from about 7.050 million bpd reported for May.

Production in June rose to its highest level in over two years, to 10.646 million bpd from 10.538 million bpd in May.

Saudi Aramco is ready to ramp up crude oil output to its maximum capacity of 12 million bpd if requested to do so by the Saudi Arabian government, the state oil company’s chief executive said on Sunday.

Saudi’s domestic crude refinery throughput rose 100,000bpd to 2.849 million bpd, a record high for June, while direct crude burn rose 105,000bpd to 687,000bpd.

Saudi Arabia’s crude exports to India in July rebounded for the first in five months, data obtained from trade and industry sources showed.

Monthly export figures are provided by Riyadh and other members of the Organisation of the Petroleum Exporting Countries (Opec) to the Joint Organisations Data Initiative (JODI), which published them on its website.

Oil slips to six-month low

Meanwhile, Oil hit a six-month low on Wednesday after a brief rally as concerns about the prospect of a global recession that would weaken demand overshadowed a report showing lower US crude and gasoline stocks.

Figures on Wednesday did little to improve the economic backdrop, showing British consumer price inflation jumped to 10.1 per cent in July, its highest since February 1982, intensifying a squeeze on households.

Brent crude fell as low as $91.51, the lowest since February, and by 1210GMT was down 37 cents, or 0.4 per cent, at $91.97. US West Texas Intermediate (WTI) crude fell 9 cents, or 0.1 per cent, to $86.44.

“The oil market is struggling to shake off recession fears, and there is little to suggest that this will change any time soon,” said Stephen Brennock of oil broker PVM.

Earlier, prices gained support from a report showing lower US crude and fuel stocks. Crude stocks fell about 448,000 barrels and gasoline by about 4.5 million barrels, said sources citing American Petroleum Institute figures on Tuesday.

Official inventory data from the Energy Information Administration is out at 1430GMT.

Oil has soared in 2022, coming close to an all-time high of $147 in March after Russia’s invasion of Ukraine exacerbated supply concerns. Prices have fallen since as those concerns were edged out by the prospect of recession.

“There are growing downside risks as a result of the growth outlook and ongoing uncertainty around Chinese Covid restrictions,” said Craig Erlam of brokerage OANDA.

An exodus of participants, especially hedge funds and speculators, has made daily price swings far greater than in previous years.

On the oil supply front, the market is awaiting developments from talks to revive Iran’s 2015 nuclear deal with world powers, which could eventually lead to a boost in Iranian oil exports if a deal is reached.

The European Union and United States said on Tuesday they were studying Iran’s response to what the EU has called its “final” proposal to save the deal. — Reuters


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