Saudi Arabia's Oil Exports Reach Three-Month High

Saudi Arabia's crude oil exports rose to 5.75 million barrels per day in September, a three-month high, despite a slight decline in production to 8.98 million bpd. The country has successfully reduced its direct crude oil burn for power generation by 36% compared to August, allowing more oil to be available for export. However, ongoing concerns about reduced demand from China, which has seen an 11% drop in imports from Saudi Arabia this year, may impact future revenues. In contrast, Iraq is projected to achieve record-high fuel oil exports, expected to exceed 18 million metric tons in 2024, bolstered by increased output and reduced domestic consumption. OPEC has extended voluntary production cuts of 2.2 million bpd until the end of December to stabilize the market amidst fluctuating global demand. Overall, while Saudi Arabia's exports have increased, both nations face challenges from changing demand dynamics in the global oil market.