Saudi Arabia, the world’s largest oil producer and exporter, has been cutting its crude exports in the recent 6 months. According to the OPEC petroleum status report, the kingdom’s oil exports tumbled to the year-lowest rates. In April, oil supplies contacted by 100,000 BPD to 7.44 million BPD, the lowest level since October 2015. Interestingly, despite weak crude exports Saudi Arabia has ramped up oil output to record highs. The kingdom produced 10.26 million BPD in April, up from 10.22 million BPD in March.
Importantly, Saudi Arabia has always managed to safeguard its market share, adjusting its policy for any market conditions. However, recently Deputy Crown Prince Mohammed bin Salman declared crucial reforms aimed to diversify the economy and reduce its dependence on the oil sector. Meanwhile, oil inventories of the kingdom shrank just 6 million barrels in April, which is 40 million barrels down from the production peak in October 2015. At the latest OPEC meeting on June 2 in Vienna, the cartel and other large exporters failed to reach an accord on a production ceiling as Iran refused to take part in the negotiations.
