According to the most recent data from the Joint Organizations Data Initiative, Saudi Arabia’s crude oil production increased by 18,000 barrels per day to reach 10.45 million in January. Meanwhile, global crude production dropped for the third consecutive month, hitting a 7-month low.
The report highlighted that the global decrease of 365,000 bpd was primarily caused by decreases in Canada, Iraq, Russia, and Bahrain. In contrast, Saudi Arabia experienced an increase in crude exports by 221,000 bpd, reaching 7.66 million. Additionally, the country’s crude inventories declined by 2.92 million barrels, while product inventories increased by 2.62 million barrels.
According to the report, oil demand declined seasonally in January and stood only marginally above year-ago levels.
The report further pointed out that global inventories of crude and refined products climbed by 101.9 million barrels to an 11-month high, but is still 304 million barrels below the five-year average.
Crude production by the US also increased by 115,000 bpd to 12.22 million bpd, while total product demand rose by 105,000 bpd in January to 19.60 million bpd.
This month’s JODI update did not include January data for China.
When it came to gas demand in January, that declined counter-seasonally by 7.7 billion cubic meters, compared to a normal seasonal average increase of 15 bcm.
“EU+UK natural gas demand was approximately 25 percent below seasonal average levels. The region’s inventories declined by 11 bcm in January, less than the seasonal average draw of 15 bcm. Inventories stood at 72 percent full at the end of the month,” said JODI in the report.
In its monthly report published on March 14, the Organization of Petroleum Producing Countries noted global oil demand in 2023 will rise by 2.32 million bpd, or 2.3 percent.
OPEC further raised its forecast for Chinese oil demand growth this year due to the relaxation of the country’s COVID-19 curbs, although it left the global total steady, citing potential downside risks for world growth.