Saudi Arabia plans to increase oil output in the coming months, reversing a recent production cut, the Wall Street Journal reported on Feb. 17, citing advisers to the country.
Saudi Arabia is expected to announce its plans when a coalition of oil producers meets next month, according to the WSJ report, adding that the output rise won’t kick in until April.
The country’s crude oil exports rose for a sixth straight month to an eight-month peak in December 2020, official data showed on Feb. 17.
Exports rose to 6.495 million bbl/d, highest since April 2020, from November’s 6.35 million bbl/d.
The world’s largest oil exporter’s total crude and oil products exports rose month-on-month to 7.71 million bbl/d, the Joint Organizations Data Initiative (JODI) said on its website.
Saudi domestic crude refinery throughput fell by 0.4% to 2.33 million bbl/d, while direct crude burn dropped by 53,000 bbl/d to 267,000 bbl/d.
The country’s crude output was little changed at 8.98 million bbl/d.
Saudi Arabia, plus other members of OPEC and its allies, have been curbing output to support oil prices since January 2017.
The kingdom has pledged an additional voluntary production cut of 1 million bbl/d in February and March.
Monthly export figures are provided by Riyadh and other OPEC members to JODI, which publishes them on its website.
Morgan Stanley expects Brent crude prices to climb to $70/bbl in the third quarter on “signs of a much improved market” including prospects of a pick-up in demand.
Additionally, Saudi Arabia's crude oil output rose by 500,000 bbl/d to 8.98 million bbl/d in August, official figures showed.
Crude exports from Saudi Arabia, the world's largest oil exporter, extended a decline in June to the lowest on record as global demand remained squeezed by the COVID-19 pandemic.