The first three months of 2025 have seen some notable developments in Saudi Arabia’s oil sector, with crude exports down sharply year-on-year as the kingdom prioritized higher-value refined products exports. Oil burn is also down sharply too, freeing up volumes for more economically-valuable activities.
This sets the scene for what should be an interesting second quarter as Saudi Arabia increases crude oil production for the first time since late-2022 amid the unwinding of deep voluntary Opec+ production cuts. A total of 389,000 b/d is to be added between April and June, and when Opec+ ministers meet on 1 June to decide on production policy for July, another accelerated increase is a distinct possibility. Oil exports could still drop in the coming months as domestic oil burn increases seasonally, but the fall should be significantly less than in 2024 (MEES, 9 May). (CONTINUED - 879 WORDS)
