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Saudi oil output likely to stay high in summer

RIYADH, July 15, 2015

Saudi Arabian crude production is likely to remain at around recent output levels during the summer months on high domestic demand, a Gulf Opec delegate told Reuters on Tuesday.

The world's top oil exporter said it pumped 10.56 million barrels per day (bpd) of oil in June, up 231,000 bpd from the month before, according to official figures released by Opec on Monday. The June production was the highest on record according to data going back to the early 1980s.

The main reason for the rise in June output was high domestic consumption, mainly the amount of crude for direct use, the Gulf delegate said.

Global demand is expected to be stronger in the second half of this year and in 2016, the delegate added.

Saudi Arabia has been increasing its production steadily in the past few months. The rise in production underlines strong growth in global demand and an increase in crude supplies to local refineries and power plants during summer, when air-conditioning usage soars and as the kingdom ships more oil products.

Opec heavyweight Saudi Arabia exported 7.737 million bpd in April, the latest month for which such data is available. That was down slightly from 7.898 million bpd in March, the highest level in almost a decade. – Reuters




Tags: Opec | Saudi crude |

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