Saudi Arabia Seen to Cutting Oil Production Slightly

Saudi Arabia’s crude oil production fell slightly by 100,000 barrels per day (bpd) in August, an industry source told Reuters on Wednesday, but still maintained historically high output levels in line with a strategy of defending market share.

The world’s top oil exporter pumped 10.26 million bpd in August, while crude supplied to the market was at 10.18 million bpd, down by about 78,000 bpd from July, the industry source said.

Supply to the market, both domestically and for export, may differ from production depending on the movement of oil in and out of storage.

“Production is‎ based on customers’ needs. It is an indication that Saudi is trying to match the customers’ needs,” the source said.

This week Saudi-based industry sources said the kingdom’s level of crude production was likely to stay around current levels in the fourth quarter as a decline in domestic crude burning for electricity would be offset by rising global demand.

Saudi Arabia’s crude production for July stood at 10.36 million bpd, according to OPEC.

via Reuters

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