Lower oil prices have taken their toll on Saudi Arabia’s crucial oil export revenues which underpin the kingdom’s economic engine. Falling prices coupled with a modest 1% drop in oil export volumes (MEES, 23 May) pushed oil export revenues to a $5bn (9%) year-on-year drop for Q1.
The $54.7bn figure (see chart 1) was the worst start to a year for Saudi oil export revenues since 2021, during the Covid-19 pandemic, although it did mark an increase from the previous two quarters. Rather than indicating the start of an upwards trend, the increase from Q4 was simply a function of seasonal trends, with lower domestic demand enabling exports to increase from late-2024 levels. Indeed, revenues look set to fall further in Q2 given that oil prices slumped by around $10/B when US President Donald Trump unveiled his tariffs policy in early April (MEES, 4 April). (CONTINUED - 478 WORDS)
