Saudi Q2 Export Revenues Boosted By Oil Price Gains

10 Sep 2021 Issue: 64 / 36 By: Jamie Ingram

Rising oil prices generated steep export revenue gains for Saudi Arabia in Q2. Increased oil production should lead to further gains over Q3, but whether the momentum can be maintained through to end-2021 is another question.

Saudi Arabia’s export revenues more than doubled year-on-year in Q2 as strengthening oil prices reinvigorated the kingdom’s exports. While 2Q 2020 was labeled the worst quarter in the history of oil markets, 2Q 2021 saw Opec+ coming under pressure to increase output as oil prices pushed above $70/B. What a difference a year makes.

Overall, Q2 export revenues came in at $63.6bn, with oil accounting for 72.5% of the total. This was the highest quarterly figure since the fourth quarter of 2019, and all signs point towards that quarter’s $63.9bn being overtaken in Q3 this year. Though oil prices dipped in August, in general prices have been robust this quarter and Saudi Arabia’s crude oil production and exports have gradually increased each month thanks to the Opec+ decision to continue easing production cuts (MEES, 23 July). (CONTINUED - 525 WORDS)