UAE Oil Industry Update—According to the Joint Organizations Data Initiative, Saudi Arabia’s crude oil exports and production surged in November to their highest levels since April 2020.
November saw an increase of 116,000 barrels per day in Saudi crude oil exports to 6.95 million barrels a day.
JODI’s newest data showed a monthly 1.7 percent increase from October’s 6.83 million BPD.
Exports of crude oil increased by 9.4 percent in the past year.
In November, crude oil production increased by 132,000 barrels to 9.91 million barrels per day. In a recent UAE oil industry update, compared to the 9.78 million BPD produced in October, crude oil production increased by 1.3 percent in November, complementing an annual growth rate of 10.5%.
As a result, crude closing stockpiles fell by 4.43 million barrels from October to 132.4 million barrels in November, the lowest amount on record. A 7.7 percent drop in crude oil stockpiles was also recorded between November 2020 and December 2101. A month earlier, refinery input grew by 161,000 BPD, or 6.2%, to 2.77 million BPD in November.
The crude oil used to generate electricity directly increased by 3.4% to 0.339 million BPD. It came after a 40 percent drop in the previous month.
A year earlier, Saudi oil refinery output increased by 0.47 million barrels in November to 2.84 million barrels per day. Year over year, this is an increase of 19.6%.
Exports of refined products increased by 0.49 million BPD, or 45.4 percent, respectively. This shows that exports accounted for the majority of the rise in output.
UAE Oil Industry Update: Caution is the Name of the Game
As investors remained cautious about earnings reports, TASI’s primary Saudi Arabian stock index began Monday’s session higher.
Saudi time, the TASI index rose 0.3 percent to 12,172 points, and the Nomu index held steady at 25,700 points.
Both Saudi Aramco and the Saudi National Bank (SNB), the Kingdom’s largest bank, reported losses of 0.14 percent in a recent UAE oil industry update .
Over 300,000 shares of Alinma Bank were traded, resulting in a 0.6% gain for the stock. Almrakez, an Arabian Centers Co., rose 2.6 percent in early trading.
As previously announced, Almrakez will pay out SR0.75 ($0.2) per share in cash dividends for the first half of its fiscal year, which ends on September 30, 2021.
SEC, a significant producer of electrical power in Saudi Arabia, saw its stock rise 2%, followed by ACWA POWER Co., which saw its share price rise 0.7 percent.
In response to the Ministry of Energy’s clearance to allocate feedstock and grow its methanol plant’s output to 331,000 tons per year, Methanol Chemical Co.’s shares rose by 0.4% in a recent UAE oil industry update .
As of 10:15 a.m, Saudi time, Brent crude oil was trading at $88.4 a barrel, and WTI crude oil was trading at $85.6.
UAE Oil Industry Update: No Extra Crude Oil
According to Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, the Kingdom does not intend to pump extra crude above its quota to make up for the production deficits of other OPEC+ members; Prince Abdulaziz bin Salman said on January 17.
Please become a Member Right Now OPEC and ten allies are hoping to recover their production to pre-pandemic levels by late 2022 through a series of monthly 400,000 b/d production boosts. However, not all members are expected to get there, having previously exceeded their maximum output levels or come close to it.
As a result, concerns have been raised about the OPEC+ alliance’s ability to maintain markets well-supplied, leading to speculation that other members with adequate spare capacity — especially Saudi Arabia and the UAE — may be required to step in.
“We have an OPEC+ agreement, and I have to honor my colleagues and my friends,” Prince Abdulaziz told S&P Global Platts in Dubai on the sidelines of a conference in a recent UAE oil industry update .
On the other hand, UAE energy minister Suhail al-Mazrouei claimed during the conference that the OPEC+ coalition would ensure that the market would not experience a supply squeeze, hence maintaining stable pricing.
OPEC+ countries will continue to be “a reliable supplier of hydrocarbons, fulfilling the world’s requirements when some other countries that used to be big providers are lagging due to natural decline,” Mazrouei added.
Some 620,000 barrels per day (BPD) were pumped by the 19 members of the OPEC+ quota system in December, Platts calculates.
Oil prices could rise to $100/b or more in 2022, as some analysts forecast, because of the omicron variant’s apparent resilience to global oil demand. This raises concerns among policymakers about inflationary pressures that could impede the economic recovery from the pandemic. As of January 17, the price of dated Brent crude oil was $87.72/b. To set production levels for March, OPEC+ ministers will meet on February 2.
Asked about OPEC+ countries’ missing their production targets, Prince Abdulaziz brushed away the subject, saying: “Concern is not in my vocabulary.”
A government spokesman later told Platts that Prince Abdulaziz generally spoke about his overall state of mind when he made a similar comment to reporters earlier in the day in a recent UAE oil industry update .
U.S. energy policymakers have stated they are closely monitoring rising energy prices, having met with OPEC+ officials before the alliance’s most recent meetings and earlier urging the producer group to go above and beyond its agreed-upon output levels.
Prince Abdulaziz declined to reveal if he had been in a recent discussion with U.S. officials regarding oil output volumes, telling reporters: “This is something we keep to ourselves.”
Iranian oil minister Javad Owji remarked just two days earlier that oil prices between $80 and $90 per barrel were “favorable,” as the government aims to make about $30 billion in petroleum sales in the upcoming year, which begins in March.
“It’s a good deal if you ask other experts and me, and I think it is. Members of OPEC take a look at this range as well.” Shana, the oil ministry news service, quoted Owji as saying.
On January 15, Iranian parliamentarians debating the government’s draft budget bill stated that the country expects to receive $29.8 billion in oil money for the upcoming fiscal year, which begins on March 21, 2015. Oil prices in the country’s crude are expected to rise to $68 a barrel based on the government’s budget sales projections in a recent UAE oil industry update.