Saudi exports 431m barrels of oil worth $11.9bn

Saudi oil exports are returning 48% less in value than the year before, but levels are necessary to maintain market share

NEWS, Business, Crude, Export, Oil, Saudi

Saudi Arabia exported almost 431 million barrels of oil worth $11.9bn (SAR45bn) in the first two months of 2016.

This was a 48% decrease in the value recorded for the corresponding period of 2015, A Riyadh reported.

In an interview, economic advisor Dr Fahd ben Joma'a said local oil consumption in the Kingdom reached 183million - 30% of total production.

The agreement reached in Doha between the UK and Russia, Venezuela and Qatar to freeze production did not have a huge effect on crude prices, he added.

Oil minister Ali al-Naimi ruled out any reduction in OPEC production even if other countries joined to freeze production at the levels reached in January 2016.

The Kingdom is maintaining its market share with production in excess of 10.2 million barrels-a-day - with some experts deeming it necessary to spur a market price correction and to narrow the gap between suppy and demand.

At present, there is a 1.5 million barrels-per-day surplus on the global supplies of crude coupled with a slowdown in global economic growth - with a lowered forecast from 2.7% to 2.5% this year.

The international Energy Agency predicted that the average price of crude will not exceed $45 until 2017.

 

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