Saudi Arabia’s crude oil exports dipped in July as domestic power generation needs increased. Despite boosting production, the Kingdom adhered to its commitment to maintain output around 9 million barrels per day (bpd).
In July, Saudi Arabia exported 5.74 million bpd of crude oil, marking a 306,000 bpd decrease from June and the lowest level since August 2023. This drop coincides with the summer months when domestic electricity demand surges due to high temperatures.
Data from the Joint Organizations Data Initiative (JODI) revealed that Saudi Arabia’s direct use of crude for power generation rose by 211,000 bpd in July to 770,000 bpd, the highest in seven months. Although production increased by 111,000 bpd to 8.94 million bpd, the extra output was primarily used for domestic power needs, leading to reduced exports.
Looking ahead, Saudi Arabia aims to attract more Asian customers by lowering its official selling prices for October. The Kingdom has cut the price of its Arab Light crude by $0.70 per barrel, responding to weaker refining margins in Asia and lower Dubai benchmark prices.
This price reduction has spurred demand from major Chinese refiners, with stable nominations from private refiners holding import quotas for the upcoming month.