
In June, Saudi Arabia drastically reduced its offshore oil supplies by 529,000 barrels per day (bpd), likely due to increased domestic demand driven by a heat wave. Ship tracking data shows that offshore supplies dropped by approximately 1.08 million barrels per day (mb/d). This monthly decline, the largest this year, saw Saudi Arabia contributing to about half of the overall decrease.
During the summer months, Saudi Arabia typically burns more crude oil at its power plants to meet the higher demand for air conditioning. This practice leads to reduced flows to export markets, though the exact timing and scale of the reduction can vary annually.
Aside from Saudi Arabia, significant declines in offshore oil supplies were also observed from Iran (198,000 b/d), Iraq (211,000 b/d), West Africa (191,000 b/d), the US (131,000 b/d), and the North Sea (157,000 b/d). Conversely, supplies increased from Brazil (176,000 b/d), Qatar (147,000 b/d), and Russia’s main Urals grade (125,000 b/d).
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