Saudi Arabia: Saudi crude output remained weak in January; Brent prices drop
Brent crude oil prices averaged USD 79.11 per barrel in January, up 2.0% from December. On 31 January, the commodity traded at USD 81.93 per barrel, up 5.5% from 29 December. Robust activity in the U.S. and stimulus in China boosted demand for oil in recent weeks.
Turning to production, Saudi oil output rose marginally to 8.97 mbpd (million barrels per day) in January from December’s 8.94 mbpd, remaining at one of the lowest levels in the past decade.
After falling 8.6% last year, Saudi crude output is projected to stagnate in 2024. Before, our panelists had projected an expansion, but the Kingdom’s recent commitment to prolonging its unilateral 1.0 mbpd cut until the end of Q2 2024 has dimmed expectations of growth. This is separate from OPEC+ production curbs in place since June 2023 that are due to last until the end of 2024.