The shut-in of more than 3.5mn b/d of Saudi crude oil production following the closure of the Strait of Hormuz in early March led to a substantial increase in oil burn for power generation in April due to the loss of associated gas. Jodi data for April provides the first indication of how Riyadh responded to the unprecedented disruption, which has only recently begun to ease with the gradual reopening of the strait (MEES, 19 June).
Reduced associated gas availability prompted temporary fuel switching (MEES, 22 May). Total oil burn – crude and fuel oil - rose to 1.156mn b/d in April from 902,000 b/d in March, the highest ever figure for the month (see chart 1). That was 32% above April 2025’s six-year low, although only 14% higher than April 2024. Oil burn fell last year as investments in renewables and non-associated gas reserves paid off. (CONTINUED - 727 WORDS)
