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Saudi Arabia crude output drops in August

Saudi Arabia crude output drops in August

Crude suppled to the market in August was at 10.18 million bpd, down by about 78,000

Saudi Arabia’s crude oil production dipped by 100,000 barrels per day (bpd) in August, an industry source told Reuters on Wednesday, but still maintained historically high output levels in line with a strategy of defending market share.

The world’s top oil exporter pumped 10.26 million bpd in August, while crude supplied to the market was at 10.18 million bpd, down by about 78,000 bpd.

The supply figure includes volumes for domestic use and export but may differ from production depending on the movement of oil in and out of storage.

“Production is based on customers’ needs. It is an indication that Saudi is trying to match the customers’ needs,” the source said.

This week Saudi-based industry sources said the kingdom’s level of crude production was likely to stay around current levels in the fourth quarter as a decline in domestic crude burning for electricity would be offset by rising global demand.

The latest slide in oil prices, which fell to a more than six-year low near $42 a barrel last month, has raised speculation about whether Saudi Arabia will cut its crude output in order to support prices.

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