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Saudi's refined oil exports offset crude curbs

January 20, 2018 at 10:44 am

Oil tanker at a port [REUTERS/Stringer/File Photo]

The share of Saudi Arabia’s exports of refined oil products steadily rose throughout 2017, offsetting a drop in overseas crude oil sales as the kingdom complied with a global supply pact, Reuters reported the International Energy Agency as saying on Friday.

Saudi exported 6.9 million barrels per day of crude oil in October, down around 760,000 bpd from a year earlier, the world’s energy watchdog said in its monthly report, citing data from the Joint Organisation Data Initiative (JODI).

But at the same time, exports of refined products such as diesel, gasoline and aviation fuel rose 155,000 bpd from a year earlier, bringing total “liquid” exports to 8.5 million bpd in October.

Although the total volume is lower year-on-year, the share of refined products accounted for 19 percent of total exports in October, up from around 13 percent a year earlier.

Read: US to replace Saudi Arabia as leading energy producer in 2018

Saudi Arabia has invested in a number of huge refineries in recent years in order to meet growing domestic demand and sell product overseas as it takes advantage of its large crude resources. Those included the 400,000 barrel per day SATORP plant in Jubail, a joint venture with France’s Total.

OPEC agreed to lower production in 2017 and has agreed to maintain output cuts for the whole of 2018 to help bring oil stocks in OECD industrialised countries down to their 5-year average.