Saudi Arabia’s oil exports in August will remain the same as in July as the extra barrels the kingdom is set to pump next month under an OPEC+ deal will be consumed domestically to meet rising power generation demand, industry sources told Reuters.
Saudi Arabia often burns more oil – estimated at about 550,000 barrels per day (bpd) – during the hot summer months for power generation.
This summer the demand for oil burning is set to rise more than last year due to COVID-19 movement restrictions which have forced millions of people to stay home.
The Organization of the Petroleum Exporting Countries and others led by Russia, known as OPEC+, have been cutting oil output since May by a record 9.7 million bpd. Under their agreement, after July the cuts are due to taper to 7.7 million bpd until December.
Key OPEC+ ministers, including Saudi Arabia and Russia as members of the Joint Ministerial Monitoring Committee (JMMC), will hold talks on Wednesday to review the oil market and compliance with the OPEC+ cut pact.