In a recent data release from the Joint Organizations Data Initiative, it was revealed that Saudi Arabia’s crude oil exports soared to a five-month high, reaching 6.34 million barrels per day in November.
Despite a slight decrease of 1.36 percent in crude production from the previous month, settling at 8.82 million barrels per day, the nation saw an increase in the export proportion. The exports accounted for 71.85 percent of the total production, the most substantial export-to-production ratio in the past eight months.
Continuing its commitment to market stability, Saudi Arabia extended its voluntary reduction in oil output, which stands at 1 million barrels per day, through the end of the first quarter of 2024. This move was made in agreement with select members of the Organization of the Petroleum Exporting Countries and their allies, collectively known as OPEC+.
On another note, the report from JODI indicated a minor drop of 0.47 percent in the output of Saudi refineries. The production of refined derivatives, which are the result of processing and refining crude oil, came in at 2.11 million barrels per day.
The country’s refined oil products are composed mainly of gas diesel, used widely in transportation and industries; fuel oil, employed in heating, power generation, and maritime activities; and specialized lubricants for vehicles and aircraft engines. Among these, fuel oil and motor and aviation oils saw an increase in production, by 6.77 and 4.67 percent, respectively. However, a marginal decrease in the production of gas diesel, which holds the largest share at 45 percent, led to an overall decline in refined products.
Moreover, Saudi Arabia’s direct utilization of crude oil for energy, bypassing extensive refining processes, dropped by 30,000 barrels per day in November, marking a 6 percent decrease from October, totaling 501,000 barrels per day.
With a focus on optimizing energy usage, the Saudi Ministry of Energy is pursuing an enhancement of natural gas and renewable energy sources. This initiative aims to replace liquid fuel with natural gas and increase the share of renewables to around 50 percent of the power generation mix by 2030.