Saudi Arabia’s refinery output has inched lower for the third month in a row, while oil product exports met the same fate, the Joint Organizations Data Initiative reported.
The Kingdom’s refinery output decreased to 2.76 million barrels per day in July, from 2.85 million bpd in June, while oil product exports decreased from 1.60 million bpd in June to 1.43 million bpd in July, JODI revealed.
While production saw a 3.1 percent month-on-month decline from June to July, total oil exports experienced a bigger 10.6 percent decrease over the same period, distorted from their growth in the past two months.
Year-over-year, the Kingdom’s refinery output grew 8.3 percent from 2.56 million bpd, and exports rose 8.0 percent from 1.32 million bpd, compared to July 2021.
All components of refinery output decreased from June’s values, bar the production of motor and aviation oil where the 23 percent constituent remained almost unchanged at 628,000 bpd in July, from 626,000 bpd the previous month.
Gas or diesel oil — by far the highest contributor to refinery oil production at 43.4 percent —went down slightly by 1.8 percent, from 1.22 million bpd in June to 1.20 million barrels per day in July.
Moreover, fuel oil showed its second consecutive monthly decline of 6.2 percent from 503,000 to 472,000 million bpd. Fuel oil is a prominent proportion of total oil products as it makes up 17 percent of total refinery oil production.
Smaller components of total oil products like kerosene, which includes jet fuel, recorded a 6.4 percent monthly decrease in July 2022.
Naphtha and liquefied petroleum gas fell 3.2 percent and 30.8 percent respectively over the same period.
Oil products falling into the classification ‘other’ almost doubled over the year from 121,000 bpd last July to 237,000 bpd this year, fueled by their 75.7 percent growth in June, where they reached 246,000 barrels of production per day.
However, like most oil products, they contracted 3.7 percent in the transition between June and July this year.
Exports of refinery oil
Refinery oil exports were pushed down this month by reductions in all components apart from fuel oil.
Motor and aviation oil exports plummeted 23.2 percent from 280,000 bpd in June to 215,000 bpd in July — falling for the third consecutive month in contrast to their fixed output in production.
Gas or diesel, oil which comprises 48.7 percent of refinery oil exports making it the highest exported product, went down 5.9 percent from 740,000 bpd to 696,000 bpd over the same period.
Although Kerosene and Naphtha make up smaller portions of total oil exports, their decreases also brought down oil exports.
Fuel oil, the second largest contributor alongside motor and aviation, went up 12.2 percent from 198,000 bdp to 222,000 bpd, showing a growth in exports for the first time in four months.
Closing stocks
The Kingdom’s closing stocks of all oil products decreased by less than one percent, due to declines in gas or diesel oil, motor and aviation oil, and kerosene.
The total closing stock was equivalent to 92.13 million barrels by the end of July, down 700,000 from 92.83 million barrels in June.