Saudi Arabia’s crude production rose to 8.96 mbpd in January: JODI

Saudi Arabia’s crude production increased by 12,000 barrels per day in January to 8.96 million bpd, representing a monthly rise of 0.22 percent, a study showed.

According to the latest report by the Joint Organizations Data Initiative, the Kingdom’s crude exports in January declined by 11,000 bpd to 6.29 mbpd, signifying a 0.17 percent dip compared to December.

Saudi Arabia’s decline in crude exports is attributed to the Kingdom’s decision to reduce oil output, aligned with an agreement by the Organization of the Petroleum Exporting Countries, and its allies, known as OPEC+.

To maintain market stability, Saudi Arabia had reduced oil output by 500,000 bpd in April 2023, which is now extended until the end of December 2024.

The Kingdom also pledged an additional oil output cut of 1 million bpd in July, which continued until the end of December 2023.

Moreover, the government had recently instructed Saudi Aramco to halt its oil capacity expansion plan, aiming for a maximum sustained production capacity of 12 million bpd, which is 1 million bpd below the stipulated target announced in 2020.

On the other hand, the Kingdom’s direct burn of crude, involving the utilization of oil without substantial refining processes, increased only slightly by 5,000 bpd in January, representing a 2 percent rise compared to the preceding month.

The total direct burn for the month amounted to 308,000 bpd, the report noted.

On the other hand, Saudi Arabia’s product inventories fell by 3 million barrels in January while its crude inventories rose by 2.6 million barrels.

JODI further noted that crude production in the US decreased by 321,000 bpd to 12.9 million bpd in January.

Similarly, crude exports of the US also declined by 386,000 bpd to 4.14 million bpd.

Additionally, US crude imports also dipped by 74,000 bpd in January.

However, India’s crude imports rose by 367,000 bpd to the second highest level on record, JODI added.

India’s total product demand also rose by 8,000 bpd month on month in January to a 10-month high.

The report revealed that Japan’s crude imports fell by 270,000 bpd in January, while the country’s product demand declined by 312,000 bpd to a five-year low.