News Column

Saudi oil exports hit SR472bn in 5 months

June 2, 2014

HIGH DEMAND: Saudi oil exports have improved with the increased demand by China.


Saudi Arabia's oil exports reached 1.17 billion barrels in the first five months of this year 2014, with proceeds amounting to SR472.8 billion, local media said quoting an expert.

On the other hand, domestic consumption during the five-month period stood at nearly 317 million barrels, or 21 percent of the total output of the same period, Fahad bin Jumaa was quoted by Al-Riyadh daily as saying.

The figures come on the back of an announcement made by Minister of Petroleum and Mineral Resources Ali Al-Naimi in mid-May saying that the Kingdom is the world's biggest oil exporter and is ready to supply markets with more crude oil if tension escalates between Russia and the West in the aftermath of the Ukraine crisis.

He stated that the Kingdom's current oil production stands at 9.6 million barrels per day (mbpd) and is prepared to increase production capacity to 12.5 million bpd.

Jumaa said Saudi oil exports have improved with the increased demand by China that is trying to increase its strategic stockpile in light of the political developments in Ukraine, which sent the prices of Brent oil to higher levels exceeding $110 per barrel compared to $ 104 for West Texas oil for July future deals.

Last May, the International Energy Agency (IEA) announced that OPEC (the Organization of Petroleum Exporting Countries) will be required to increase production in Q3 (2014) by 900,000 barrels per day as from April to meet growing global demand, which is expected to rise by 65,000 per day in the current year to reach 92.8 mbpd, he said.

It is to be recalled that Saudi oil exports hit 715.72 million barrels in the first quarter of the year with proceeds amounting to SR288.91 billion.

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Source: Arab News (Saudi Arabia)

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