Saudi Arabia’s crude oil exports jumped by nearly 500,000 barrels per day (bpd) in February compared to January, the latest data from the Joint Organizations Data Initiative (JODI) showed on Tuesday.
Crude exports from the world’s biggest crude exporter averaged 6.547 million bpd in February, up from 6.073 million bpd in January, according to the JODI database, which compiles self-reported figures from individual countries.
Saudi crude oil production averaged 8.947 million bpd in February, essentially flat compared to the 8.917 million bpd output in January, the database showed.
That’s perfectly in line with the Saudi pledge in the OPEC+ agreement to keep its production capped at about 9 million bpd.
Saudi Arabia has not only been shouldering the largest volume of the OPEC+-wide cuts as a top producer, but it is also cutting production by another 1 million bpd in a unilateral move.
Saudi Arabia’s oil production is expected to rise slightly in April and more in May after the OPEC+ group began easing the cuts by a total of about 138,000 bpd this month. Production and supply from Saudi Arabia and OPEC+ are set to further increase in May, by a larger volume than the market was anticipating.
Earlier this month, OPEC+ decided that it would continue to add production next month with a production hike in May three times the expected amount.
OPEC+ producers see “healthier oil market outlook,” and that’s why they decided to add 411,000 barrels bpd to their combined supply from May, bundling three monthly increases in output in the May production levels. OPEC said.
OPEC also noted that the decision to go ahead with a large production boost in May could also “provide an opportunity for the participating countries to accelerate their compensation.”
Saudi Arabia has been strictly sticking to its pledge to keep production capped at 9 million bpd until April, but other OPEC+ participants, especially Iraq, Kazakhstan, and Russia, have struggled to pump at or below their quotas.
By Tsvetana Paraskova for Oilprice.com
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