Saudi oil exports hit 2-year low in August amid production cuts

Saudi Arabia, the world's largest crude oil exporter, witnessed a significant drop in its crude oil shipments last month, reaching a more than two-year low. This decline is attributed to the coordinated production cuts by the Organization of Petroleum Exporting Countries (OPEC) and its allies, aimed at bolstering global oil prices.

Saudi Arabia Crude Exports

Saudi Arabia's crude oil exports fell to its lowest level since March 2021 in August, when they fell to about 5.6 million barrels per day. Exports fell noticeably from July, when they reached 6.3 million barrels per day, to this substantial reduction.

Notably, exports to China hit multi-year lows, dwindling to 1.3 million barrels per day, the lowest since June 2020. Additionally, shipments to several destinations, including the United States, reached multi-year lows, with exports to Japan and South Korea plummeting to the lowest levels recorded since 2017 when Bloomberg began tracking such data.

Saudi Arabia, in partnership with Russia, recently unveiled significant reductions in oil supply. The kingdom pledged to trim its production by 1 million barrels per day during both July and August. Simultaneously, Russia aimed to curtail its oil supplies by 500,000 barrels per day in the same period. These coordinated efforts were initiated to support global oil price stability.

This reduction in oil supply is in line with the collaborative endeavors of OPEC+ member nations to maintain stability and balance within the global oil markets. A source from the Ministry of Energy, as reported by the Saudi Press Agency, reaffirmed the commitment of these nations to this goal through their collective actions.

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