Saudi Arabia reduces oil exports to a 2-year low

London: 16 August 2023 (TraderMade): Saudi Arabia is the second largest crude oil-producing country after the US. It is a member of the Organization of Petroleum Exporting Countries (OPEC).

Saudi Arabia has decreased its crude oil exports in the third month consecutively. Its oil export in June was the lowest since September 2021.

The Kingdom of Saudi Arabia exported 6.8 million barrels per day (bpd) of crude oil in June 2023. This is lower by 1.8% than its May export of 6.93 million bpd.

Meanwhile, the global oil demand is anticipated to increase by 2.4 million bpd in 2023. China and India continue the trend of Russian oil imports. They account for the highest imports in recent months.

Saudi Arabia's voluntary cuts in oil exports have many reasons and economic implications. The cuts started amid the growing interest rates by central banks of many developed countries to counter inflation. However, a significant decrease in crude oil supply will impact global oil prices in the coming months.

Economic experts anticipate that the tighter supply of crude oil may cause the inflation rate to increase in countries highly dependent on oil imports.

Thorough market research is the key to success in commodities-related investments and trading. Therefore, staying updated with the oil market will help you make informed decisions.