Saudi Arabia: Saudi crude output remains weak in October; Brent prices retreat
Brent Crude Oil averaged USD 88.95 per barrel in October, down 4.0% from September’s price. On 31 October, the commodity traded at USD 87.54 per barrel, 8.2% lower than on the same day of the previous month. The decline was chiefly driven by a selloff in early October amid concerns surrounding the health of the global economy. Prices regained some ground following the onset of the Israel-Hamas conflict.
Turning to production, Saudi oil output fell slightly to 8.99 mbpd (million barrels per day) in October from September’s 9.02 mbpd, remaining at one of the lowest levels in the past decade.
Saudi Arabian oil production is projected to fall 7.6% year on year in 2023, to below the 10-year average of 9.86 mbpd. This will be largely due to production curbs agreed with OPEC earlier in the year and the 10% unilateral cut in place since July. Next year, oil production is projected to rise 2.1% but remain nonetheless below 2022 levels. While the unilateral 10% cut to production is likely to end in H1 2024, the production curbs agreed with OPEC are due to last until the end of next year.