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Saudi Crude Oil Exports Hit 2-Year High

A drilling rig in the Hasba field, located 150 km north of Jubail Industrial City on the coast of the Arab Gulf (Saudi Aramco)
A drilling rig in the Hasba field, located 150 km north of Jubail Industrial City on the coast of the Arab Gulf (Saudi Aramco)
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Saudi Crude Oil Exports Hit 2-Year High

A drilling rig in the Hasba field, located 150 km north of Jubail Industrial City on the coast of the Arab Gulf (Saudi Aramco)
A drilling rig in the Hasba field, located 150 km north of Jubail Industrial City on the coast of the Arab Gulf (Saudi Aramco)

Saudi Arabia’s crude oil exports hit a more than two-year high of 7.6 million barrels per day in August, according to data from the Joint Organization Data Initiative.

The Kingdom saw a 3% rise from July, recording its highest volume since April 2020.

It was also the third month in a row to register a rise.

The data also showed that crude production in Saudi Arabia broke the 10.815 million bpd cap for the third time in the country’s history in August, reaching 11.051 million bpd.

Domestic crude refinery output increased by 38,000 bpd to reach 2.8 million bpd, whereas its direct crude burn increased by 3,000 bpd to reach 664,000 bpd in August.

Earlier this month, the Organization of Petroleum Exporting Countries and its allies, termed OPEC+, decided to cut their output target by 2 million bpd.

The decision by OPEC+ was met with US criticism. Many fear that the cut may impact gas prices in the US ahead of upcoming elections.

Despite US disapproval, the decision was met with support from Arab countries and OPEC members.

On Sunday evening, Saudi King Salman bin Abdulaziz stressed that the Kingdom's strategy in the global oil sector is based on supporting market “stability and balance.”

“Our country is working hard, within its energy strategy, to support the stability and balance of global oil markets, as oil is an important element in supporting the growth of the global economy,” King Salman told the Shura Council.

Iraq, Kuwait, Bahrain, Oman, and Algeria, joined by the UAE and Egypt, expressed their support for the decision amid the uncertainty and potential recession surrounding the global economy.

UAE Energy Minister Suhail Al-Mazroui tweeted: “The latest unanimously approved OPEC+ decision is a purely technical decision with no political intention whatsoever.”

His comments follow statements from Iraq’s state oil marketer SOMO.

“There is complete consensus among OPEC+ members that the optimal approach is … a pre-emptive approach that supports market stability and provides necessary guidance for the future,” a SOMO statement said.

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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)
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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)

Saudi Arabia’s non-oil private sector concluded 2024 on a high note, with significant increases in sales and business activity fueled by robust domestic and international demand.
The Kingdom’s non-oil GDP is expected to grow by over 4% in both 2024 and 2025, supported by notable improvements in business conditions, according to Riyad Bank’s Purchasing Managers’ Index (PMI) report.
Despite inflationary challenges, the Riyad Bank PMI recorded 58.4 points in December, reflecting strong and accelerated economic recovery, albeit slightly lower than November’s 59.0 points.
The solid performance highlights improvements across non-oil sectors, with new business activity in December growing at its fastest pace in 12 months. This growth reflects rising domestic and global demand. Renewed marketing efforts and strong customer demand encouraged companies to boost production and expand operations, particularly in wholesale and retail.
The PMI has remained above the neutral threshold of 50.0 points since September 2020, signaling continuous expansion in Saudi Arabia’s non-oil economic activity.
The International Monetary Fund (IMF) previously projected sustained momentum in Saudi Arabia’s non-oil reforms, estimating non-oil GDP growth for 2024 at between 3.9% and 4.4%. The IMF noted that growth could reach 8% if reform strategies are fully implemented.
Expansion in International Markets
A surge in exports was among the key factors driving non-oil economic growth in Saudi Arabia. December saw the largest increase in export orders in 17 months, underscoring the success of Saudi policies in opening new markets and fostering strong international trade relationships, supported by ongoing product innovation.
Higher domestic and international demand boosted production levels in December. Companies also worked to enhance operational efficiency, leading to a notable increase in inventory. Purchasing activity accelerated to its highest level in nine months, reflecting the sector’s ability to effectively meet rising demand.
Cost Pressures on Production
Despite significant growth in production and sales, the sector continues to face challenges related to sharp inflation in input costs, driven by heightened demand for raw materials. These pressures have led to higher product prices, although some companies opted to reduce prices to remain competitive and address elevated inventory levels.
Meanwhile, wage cost increases were less pronounced, helping mitigate economic pressures related to salaries.
Future Outlook
Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, highlighted the positive end to 2024 for the Kingdom’s non-oil private sector, reflecting the progress achieved under Saudi Arabia’s Vision 2030. He noted that the PMI score of 58.4 points demonstrates the sector’s resilience and ongoing expansion.
Al-Ghaith expects non-oil GDP to grow by over 4% in 2024 and 2025, driven by improved business conditions and rising new orders, signaling increased market confidence and demand. Elevated domestic demand and export growth have pushed total sales to their highest level in a year. This, in turn, has led to strong increases in business activity and inventory levels, demonstrating the sector’s ability to meet and capitalize on excess demand, he underlined.