Gasoline Demands Fall in Saudi Arabia during First Quarter

A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)
A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)
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Gasoline Demands Fall in Saudi Arabia during First Quarter

A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)
A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)

The rise in fuel prices this year seems to have had an impact on demand in Saudi Arabia, falling by an average of 7.4 percent in the first quarter of this year, according to official figures.

Data released by the Joint Organizations Data Initiative (JODI) showed that the kingdom consumed an average of 549,000 barrels per day between January and March of this year compared with an average of 590,000 bpd during the same period last year.

Even if the data are compared on a monthly basis and not on a quarterly basis, it is clear that consumption is declining. In January, demand for gasoline fell 7.7 percent from the same month last year, while in February it fell 7.5 percent and in March 5.7 percent.

As of January, the official selling price of 91 octane fuel was at 1.37 riyals per liter and 95 octane fuel at 2.04 riyals per liter. While the price of diesel for the transport sector did not change from the previous basic price of about 0.47 riyals per liter. These prices include VAT.

Although the price of fuel has been adjusted in Saudi Arabia, the Kingdom has been among the countries with the lowest gasoline prices. The Kingdom ranked fifth in the world, with the price of a liter of gasoline $0.37. Venezuela came first with $0.01 per liter, followed by Turkmenistan $0.28, Algeria $0.28. Kuwait ranked fourth in the world at about $0.34, while Egypt and Ecuador ($0.39) came in sixth place.

The data showed that there is a growth in gasoline imports this year, although demand is falling. Saudi Arabia's gasoline imports in March rose by 54.5 percent from a year ago, while in February they rose by 47.4 percent after an increase of 69 percent in January.

Demand for diesel, the second fuel in the transport sector after gasoline, has fallen during all months of the year, although its price remained the same unlike gasoline. Demand for diesel in March fell by 9.6 percent year-on-year, while the decline was 18 percent in February and 13 percent in January, data showed.

Earlier this year, Saudi Arabia's diesel imports fell by about 14 percent before rising by a very large 240 percent in February. In March, imports increased by only 36.4 percent, data showed.



Oil Steadies, But on Track for Biggest Weekly Loss in Over a Month

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Steadies, But on Track for Biggest Weekly Loss in Over a Month

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Crude oil futures steadied on Friday after strong US retail sales data, but Chinese economic indicators remained mixed and prices were headed for their biggest weekly loss in more than a month on concerns about demand.
Brent crude futures gained 8 cents, or 0.1%, to $74.53 a barrel by 0338 GMT, while US West Texas Intermediate crude was at $70.82 a barrel, up 15 cents, or 0.2%, Reuters said.
Both contracts settled higher on Thursday for the first time in five sessions after data from the Energy Information Administration (EIA) showed that US crude oil, gasoline and distillate inventories fell last week.
Brent and WTI are set to fall about 6% this week, their biggest weekly decline since Sept. 2, after OPEC and the International Energy Agency cut their forecasts for global oil demand in 2024 and 2025 and concerns eased about a potential retaliatory attack by Israel on Iran that could disrupt Tehran's oil exports.
IG market strategist Yeap Jun Rong said while oil prices remained subdued on Friday, there were signs of near-term stabilization after the market factored in fading geopolitical risks over the past week.
"The recent run in stronger-than-expected US economic data does offer further relief around growth risks, but market participants are also side-eyeing any recovery in demand from China, given recent stimulus unleash," he said in an email.
US retail sales increased slightly more than expected in September, with investors still pricing in a 92% chance for a Federal Reserve rate cut in November.
Meanwhile, third-quarter economic growth in the world's top oil importer China was at its slowest pace since early 2023, though consumption and industrial output figures for September beat forecasts.
China's latest data dump offered somewhat of a mixed bag, with the country now officially falling short of its 5% growth target for the year and the absence of a sizable fiscal push seems to leave some reservations on overall oil demand, said IG's Yeap.
China's refinery output also declined for the third straight month as weak fuel consumption and thin refining margins curbed processing.
Markets, however, remained concerned about possible price spikes given simmering Middle East tensions, with Lebanon's Hezbollah militant group saying on Friday it was moving to a new and escalating phase in its war against Israel after the killing of Hamas leader Yahya Sinwar.
Geopolitical risks, such as developments in the Middle East, will continue to drive fears of supply disruptions and in turn short-term spikes in oil prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.