Saudi Arabia’s oil production increased by 20% in 8 months

Saudi Gazette report

JEDDAH — Saudi Arabia’s average oil production has increased by 20% from the start of 2022 until the end of August, according to a government document seen by Saudi Gazette.

The Kingdom’s production reached around 10.5 million barrels per day, 1.8 million barrels per day higher than the same period last year.

The increase is due to efforts by the OPEC+ agreement to support market stability and performance efficiency for the benefit of market players and the oil industry.

Saudi Arabia expects real GDP growth to reach 8% in 2022, driven by real GDP growth in oil activities and sustained levels of growth in non-oil activities, which are expected to register growth of 5 .9% in 2022.

According to OPEC’s monthly oil market report for August 2022, global oil demand is expected to register a growth of 3.1 million barrels per day compared to last year, reaching 100.03 million. barrels per day.

Global oil demand in 2023 is expected to grow by around 2.7 million barrels per day to 102.72 million barrels per day.

It should be noted that the share of non-OECD countries constitutes the largest percentage of growth in 2023, which is about 2.1 million barrels per day.

The report attributes the increase to economic recovery in these countries and increased demand for fuel in the transport, industrial and petrochemical sectors.

The average price of Brent crude oil futures has risen, from the start of 2022 through the end of August, by 55% to register around $104.04 per barrel, compared to $67.06 per barrel during the same period. last year.

Average Brent crude oil futures prices hit their highest levels since 2008, with the closing price hitting $127.98 a barrel on March 8, 2022.

Despite uncertainty in global markets during this year amid geopolitical events, serious economic concerns and tightening monetary policies to curb inflation around the world, the oil market has been characterized by relative stability. to other energy markets such as natural gas, coal and electricity.

The OPEC+ deal has notably helped support oil market stability and balance supply with the gradual recovery in global oil demand following the easing of the coronavirus pandemic.

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