In a strategic move to stabilize the global oil market, Saudi Arabia, the world’s largest crude oil exporter, has continued to reduce its production, resulting in a sharp decline in crude exports. Data from the Joint Organisations Data Initiative (JODI) revealed that in August, Saudi Arabia’s crude oil exports plummeted to 5.58 million barrels per day (bpd), marking the lowest level in 28 months.
This downward trend in exports commenced in March, with a peak of over 7.5 million bpd in January. It is attributed to the OPEC+ cuts, where Saudi Arabia curtailed production by approximately 500,000 bpd, in addition to the voluntary Saudi cut of 1 million bpd—an extension now confirmed until the close of this year.
The Kingdom further reduced its crude oil production by 95,000 bpd in August, hitting 8.92 million bpd—the lowest level in 27 months. This coincided with the implementation of the voluntary cut of 1 million bpd in July.
Saudi Arabia’s decision to extend these production cuts until the end of 2023, in conjunction with Russia, underscores their commitment to market stability and balance. These measures have not only impacted global oil supplies but also contributed to a surge in prices, culminating in the highest levels observed this year by the end of September.
