Global Crude Oil Exports Fall, Led by Saudi Arabia’s Decline
Global seaborne crude oil shipments saw a significant decline in June, with Saudi Arabia accounting for half of the 1 million barrels per day (bpd) drop compared to May, according to tanker-tracking data.
The estimated 1.08 million bpd decrease in global crude oil shipments marked the largest monthly drop in seaborne crude supply this year.
Saudi Arabia, the world’s leading crude oil exporter, was at the forefront of this decline. This reduction is likely due to increased domestic oil consumption for power generation, a common practice during the summer months when air conditioning demand peaks in the desert nation.
Typically, Saudi Arabia withholds more crude for domestic use during the northern hemisphere’s summer months, though the exact timing can vary. In June, Saudi seaborne crude oil shipments fell by 529,000 bpd, reaching 5.606 million bpd, down from 6.135 million bpd in May.
Other major producers also experienced declines in crude shipments in June compared to May. Exports from Iran and Iraq, as well as shipments from West Africa, the U.S. Gulf Coast, and the North Sea, saw reductions.
Conversely, Brazil and Qatar increased their seaborne shipments. Additionally, shipments of Russia’s flagship grade Urals rose, although exports of other Russian grades decreased.
In March, Saudi Arabia’s crude shipments had risen to their highest level in nine months, according to data from the Joint Organizations Data Initiative (JODI). However, in April, Saudi crude exports fell by 445,000 bpd from March, settling at 6 million bpd, as per the latest JODI data.
Simultaneously, Saudi crude oil production increased by 13,000 bpd to 8.99 million bpd in April, according to JODI, which compiles self-reported figures from individual countries. Saudi direct crude burn rose by 93,000 bpd month-on-month and was up by 11% year over year in April, the data revealed.
