Saudi Arabia: Saudi crude output still weak in July; Brent prices rise
Brent crude oil prices averaged USD 84.05 per barrel in July, up 1.4% from June. On 31 July, the commodity traded at USD 80.64 per barrel, down 6.7% from 28 June. Prices rose to a three-month high in July, as supply was constrained by OPEC+ cuts, and demand prospects were boosted by lower-than-expected U.S. inflation.
Turning to production, Saudi oil output rose to 9.02 mbpd (million barrels per day) in July from 8.92 mbpd in June, while remaining at one of the lowest levels in the past decade.
After contracting by almost 10% in 2023, Saudi oil production is expected to decline further in 2024, though at a slower rate, due to ongoing curbs agreed upon with OPEC+. In June, the cartel decided to gradually ease some of these production cuts starting in October. By the end of 2025, Saudi Arabia’s crude output is projected to approach 10 million barrels per day, which would be close to peak levels.