Revenues from sales of crude oil and petroleum products fell to $17.4 billion in August, which was 6% lower than in July. This is the lowest monthly income since June 2021.
Saudi Arabia’s oil export earnings fell to their lowest level in more than three years as weak demand growth weighed on oil. Bloomberg reported this.
Revenue from sales of crude oil and petroleum products fell to $17.4 billion in August, down 6% from July, according to the government’s statistics agency. This is the lowest monthly income since June 2021.
It is noted that Saudi Arabia’s economy is still dependent on oil revenues, especially now that the country has embarked on an ambitious plan to expand the technology, tourism and manufacturing sectors. The investments needed to implement Crown Prince Mohammed bin Salman’s plan to transform the economy rely on oil revenues to fund initiatives aimed at reducing dependence on hydrocarbons revenue.
This has been hampered by falling oil prices and production cuts. Global benchmark Brent crude is down about 1% this year and is trading at around $75 a barrel.
Oil consumption growth is reported to be weak, especially in China, one of the world’s most important import markets, while new supplies from countries such as the US, now the world’s largest oil producer, is more than demand growth and weighs on prices.
To support the market, the Organization of the Petroleum Exporting Countries (OPEC) and its allies limit production. This limits the amount of oil that Saudi Arabia, the alliance’s favorite, can sell.
The wider OPEC+ group, which includes producers such as Russia, plans to lift some of these restrictions in December, although it has left open the possibility of keeping them in place if necessary to avoid oversupply.
Let’s recall that the “black gold” fell in price on reports of Saudi Arabia’s intention to increase production to regain market share.
Source: korrespondent
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