Saudi oil exports hit 2 years high when US sanctions on Iran returned

Saudi Arabia's crude oil exports jumped by 534,000 bpsd a month in November to 8.24 bpd – the highest level this year when the kingdom moved to compensate for supply losses from Iran with the return of US sanctions against Tehran's oil industry. 19659002] According to data from the Joint Organizations Data Initiative database (JODI), which gathers self-reported figures from 114 countries, Saudi Arabia's crude oil exports hit a 24-month high, while crude oil production rose to a full-time high of 11.09 million bpd in November.

The months before, Saudi Arabia had increased its October oil exports to what was the highest level since January 2017, when the original OPEC / non-OPEC production agreement began.

After the US granted exemptions to eight key Iranian oil customers to continue importing oil from Iran to early May this year, Saudi Arabia and its allies at OPEC and non-OPEC Russia said the production began when the market began to fetch OPEC and its Russian-led non-OPEC partners agreed on a new production agreement in early December. The goal was to remove 1[ads1].2 million bpd from the market between January and June this year, with Iran, Venezuela and Libya except for cuts due to their particular circumstances.

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Saudi Arabia had already begun to slide production already in December and cut production with Bpd 468,000 from November at an altitude of 11 021 million bpd, to 10.553 million bpd, according to OPEC's secondary sources – those used to calculate compliance and cuts.

According to the deal, January 1, OPEC's de facto leader and largest producer Saudi Arabia is busy cutting 322,000 bpd from the October base of 10,633 million bpd and keeping production at 10,311 million bpd by June.

Shortly after the OPEC + meeting in Vienna early in the month, Saudi Energy Minister Khalid al-Falih said that the kingdom would reduce production to around 10.2 million bpd in January, and that Saudi crude oil exports would be cut to below 8 million bpd in January. December from 8.3 million bpd in November. Saudi Arabia is reportedly targeting further slash oil exports in January to around 7.3 million bpd.

By Tsvetana Paraskova for Oilprice.com

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