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Saudi Arabia Commodities August 2023

Saudi Arabia: Saudi oil output falls in August, but oil prices rise in August–September

Brent prices averaged USD 85.2 per barrel in August, up 6.3% from July’s price but 12.8% lower year on year. Meanwhile, on 31 August, Brent traded at USD 86.9 per barrel, 1.5% higher month on month. Brent prices then rose a further 8.8% in September. Recent production cuts by Russia and Saudi Arabia boosted prices.

Turning to production, Saudi oil output fell to 8.97 million barrels per day (mbpd) in August from July’s 9.06 mbpd, the lowest since May 2011. Production then remained roughly stable in September, according to an unofficial Reuters survey.

Our panelists see Saudi Arabia’s oil production in 2023 below last year’s levels and the 10-year average of 9.86 mbpd. The decline will be largely because of the 1.00 mbpd voluntary production cut in place from July until the end of the year, as well as those agreed earlier with OPEC+ lasting until the end of 2024.

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