News Column

KSA oil exports hit SR657bn in 7 months

August 14, 2014


Saudi Arabia's oil exports reached 1.6 billion barrels in the first seven months of the current year (2014) with proceeds amounting to SR657 billion, local media said quoting an expert.

Meanwhile, domestic consumption during the same period is expected to stand at nearly 475 million barrels, or 23 percent of the total output, Fahad bin Jumaa was quoted by Al-Riyadh daily.

On global demand, Jumaa said demand on oil is expected to be strong for the remaining period of the current year due to geopolitical turmoil, notably in the Middle East, North Africa and Eurasia.

Oil prices were adversely affected by political chaos in Iraq and geopolitical developments in Ukraine, he said.

He said the decline in Brent price in the last couple of days comes to cope with investors' continued evaluation of the situation in the Middle East and Eastern Europe where the Brent oil for September future deals fell to $104.44 per barrel compared to earlier figures of $108 per barrel.

He said prices of West Texas oil for future deals dropped to $97 per barrel, which is considered the lowest for the last six months, leaving a price gap of $7.4 between Brent and West Texas oils.

Some reports have indicated that global demand on oil increased to 89.9 million barrels per day (mbpd) compared to oil supplies of 90.1 mbpd, thus sending oil basket price of the OPEC (Organization of Petroleum Exporting Counties) to drop to $102 per barrel, which signifies stability of global oil market, Jumaa said.

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Source: Arab News (Saudi Arabia)

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