Posted on July 27, 2015 by Grace Montealegre
The crude exportations of Saudi Arabia fell to the lowest level of the past five months due to an increase in the country’s internal demand and to maintenance processes going on at several plants throughout the country.
During May, the kingdom of Saudi Arabia, the main crude oil exporter in the world, shipped 6.94 million barrels per day, a value significantly lower than the 7.74 million barrels per day registered in April. The country’s exports exhibited the worst performance since December 2014.
Meanwhile, Chinese refineries have kept inactive their production capability of at least one million barrels per day due to the worsening of the country’s internal demand. This situation has also contributed to the contraction of Saudi Arabia’s exports since China is an important market for Saudi crude.
The Saudi refineries consumed 2.4 million barrels of crude per day during May, an increase from the 2.2 million registered in April, which in turn accounted for the lowest level since January of 2002. The markets expect the county’s internal demand to further rise during the hottest part of the summer as a result of an increase in air conditioning use, contributing to a continued downward pressure on exports.
La Nota Economica - Media Partner