Data from the Joint Organizations Data Initiative (JODI), released on Monday showed that the world’s largest exporter of crude oil, Saudi Arabia, saw sales fall to a five-month low in April.
According to JODI Oil database, which aggregates self-reported statistics from almost 50 nations, in April Saudi Arabia’s crude exports fell by 207,000 barrels per day, (bpd) from March, to 7.32 million bpd.
The fall in sales came one month prior to the first of the voluntary cuts, which were agreed upon by Riyadh and a number of the larger OPEC+ producers, including Russia, and were enacted in May.
The new round of production output cuts will reduce output by about 1.66 million barrels until the end of 2023. Those cuts are being implemented on top of previous agreements on production cuts, which altogether will reduce production output by about 3.66 million barrels per day, or 3.7% of global oil demand.
In the latest round of production cuts, Saudi Arabia announced it would cut its own production output by 500,000 bpd. Additionally, the Kingdom announced an additional unilateral cut of one million bpd which would last through July, which could be extended depending on market conditions.
The data from JODI showed that in April, Saudi Arabia produced roughly 10.46 million bpd, which was about 3,000 bpd down from the previous month.
Closing stocks of Saudi crude oil and oil products increased by 372,000 barrels to 235.5 million barrels for April. Product inventories were down by 1.6 million barrels as crude inventories rose by 1.98 million barrels, according to JODI data. In Saudi Arabia direct burn of crude for April increased by 35,000 barrels to 389,000 bpd.
Meanwhile, diesel imports for the Kingdom grew by 71,000 bpd month over month, hitting their highest level since November of 2018. The kingdom has been increasing its imports of diesel from fellow OPEC+ producer Russia, buying fuels which are now banned in the EU due to Western sanctions imposed over the conflict in Ukraine.