Saudi Arabia oil exports fall as trade fears keep prices in check

OPEC and its allies have agreed to limit output to support oil prices. (Reuters)
Updated 18 April 2019
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Saudi Arabia oil exports fall as trade fears keep prices in check

  • The world’s top oil exporter shipped 6.977 million bpd in February, down from 7.254 million bpd in January
  • Prices have been supported this year by an agreement reached by the OPEC and its allies, including Russia, to limit their oil output by 1.2 million barrels per day (bpd)

DUBAI: Saudi Arabia’s crude oil exports fell by 277,000 barrels per day (bpd) in February from the month before, official data showed on Thursday.
The world’s top oil exporter shipped 6.977 million bpd in February, down from 7.254 million bpd in January, according to data from the Joint Organizations Data Initiative (JODI).
The Kingdom pumped 10.136 million bpd in February, down from 10.243 million bpd in January.
Saudi crude inventories rose to 204.567 million barrels in February from 200.834 million in January, the JODI data showed.
Refineries in the Kingdom processed 2.767 million bpd in February, up from 2.758 million bpd in January, according to JODI.
Prices have been supported this year by an agreement reached by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to limit their oil output by 1.2 million barrels per day (bpd).
Global supply has been tightened further by US sanctions on OPEC members Venezuela and Iran.
Iran’s crude exports have dropped in April to their lowest daily level this year, tanker data showed and industry sources said, suggesting a reduction in buyer interest ahead of expected further pressure from Washington.
Indian refiners are turning to other OPEC members, Mexico and the US to make up for any loss of Iranian oil.
Spain’s Repsol has suspended its swaps of refined products for crude with Venezuela’s state-run oil company PDVSA, people familiar with the matter said, as US officials weigh penalties for foreign firms doing business with Venezuela.
Growing US oil production and concerns over the US-China trade dispute are keeping prices in check.
US crude oil output from seven major shale formations
was expected to rise by about 80,000 bpd in May to a record 8.46 million bpd, the EIA said in its monthly report on Monday. Surging US production has filled some of the gap in supplies, although not all of the lost production can be immediately replaced by US shale oil due to refinery configurations.
Saudi exports of refined oil products in February fell to 1.461 million bpd, from 1.616 million bpd the month before, the data showed.
The OPEC heavyweight used 259,000 bpd of crude oil to generate power in February, down from 377,000 bpd the month before, while Saudi demand for oil products in February was 2.157 million bpd, up slightly from 2.073 million bpd in January.
Monthly export figures are provided by Riyadh and other members of OPEC to JODI, which publishes them on its website.


MODON to establish integrated pharmaceutical complex

Updated 23 May 2019
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MODON to establish integrated pharmaceutical complex

JEDDAH: The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed an industrial land lease covering more than 62 thousand square meters in the city of Madinah, to build a pharmaceutical complex including research and development centers, with a total investment reaching SR 570 million.

MODON’s Director General Khalid bin Mohammed Al-Salem said that the signing of the contract was the result of joint work with the National Program for the Development of Industrial Compounds. MODON provided various facilities and incentives to support the investment, with the project set to provide nearly 1000 jobs for both genders with a localization rate exceeding 50 percent.

He added that the project is in line with the goals of the National Industrial and Logistics Development Program (NIDLP) to localize the most advanced industries in the world, in accordance with Saudi Vision 2030 for economic diversification.

Since its inception in 2001, MODON has been developing integrated industrial lands in accordance with the highest international standards. It currently oversees 35 industrial cities under development in various regions of the Kingdom, in addition to supervising private industrial parks and cities. The developed industrial lands exceeded until today 198.8 million square meters, while the existing industrial cities include 3,474 productive factories.