Saudi Arabia experienced a significant drop in oil exports

In June of this year, Saudi Arabia experienced a significant drop in oil exports, which reached a ten-month low. The reason for this was fierce competition in key markets and the growth of domestic oil consumption in the country. According to Bloomberg, the volume of oil exports from Saudi Arabia amounted to approximately 168 million barrels, which is equivalent to 5.6 million barrels per day.

This figure is only 250,000 barrels per day higher than the lowest level recorded since the start of the Covid-19 pandemic. The situation is particularly difficult with the two largest buyers of Saudi oil - China and India. Exports to China totaled 1.27 million barrels per day in June, the lowest since mid-2020, when demand for oil plummeted due to the pandemic.

Shipments to India also showed their lowest level since mid-2021, underscoring the overall difficult situation for Saudi exporters. An additional problem is the persistent tendency to decrease supplies to world markets, which the country has been facing since the beginning of 2022.

One of the key reasons for the drop in exports is competition from Russia, which is an active member of the Organization of the Petroleum Exporting Countries and its allies (OPEC+). Russian supplies to the world markets, which partially compete with the Saudi ones, complicate the position of Saudi Arabia in the world oil markets.

The government of Saudi Arabia is tasked with developing strategies to maintain and increase export volumes in order to ensure the stability of the industry in the face of global challenges and competition.