Palm trees and buildings in Saudi Arabia

Saudi Arabia Commodities December 2023

Saudi Arabia: Saudi crude output remained soft in December; Brent prices decline

Brent crude oil prices averaged USD 77.54 per barrel in December, down 5.7% from November’s price. On 29 December, the commodity traded at USD 77.69 per barrel, 3.7% lower than on the same day of the previous month. Prices have remained muted in January, dented by soft global demand and strong non-OPEC+ supply.

Turning to production, Saudi oil output fell marginally to 8.96 mbpd (million barrels per day) in December from November’s 8.97 mbpd, remaining at one of the lowest levels in the past decade.

After falling 8.6% last year, Saudi crude output is projected to stagnate in 2024. Before, our panelists had projected an expansion, but the Kingdom’s recent commitment to prolonging its unilateral 1.0 mbpd cut until the end of Q1 2024 has dimmed expectations of growth. This is separate from OPEC+ production curbs in place since June 2023 that are due to last until the end of 2024. An extension of the unilateral cut beyond Q1 poses a downside risk to oil production for the year as a whole.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest