Saudi Arabia’s oil export revenues tumbled further in August, dropping to $17.4bn, the lowest in more than three years according to the latest government statistics. Revenues fell by $1bn from July, despite export volumes increasing by 60,000 b/d, as the price of Aramco’s flagship Arab Light crude grade dropped below $80/B for the first time since June 2021.
August revenues were $3.2bn down on year-ago figures, the largest year-on-year gap of the year so far (see chart 1), and closing the gap any time soon will be a challenge. With Arab Light prices dropping further to just $75.16/B for September, revenues may well have fallen again last month, even with Kpler data showing a marked increase in Saudi oil exports. Domestic demand typically begins to drop from September onwards as consumption in power plants declines seasonally, freeing up additional barrels for export. (CONTINUED - 700 WORDS)
