BAKU, Azerbaijan, March 29. If Saudi Arabia continues to bear the brunt of the OPEC+ cuts, it might see the biggest decrease in the world's oil production for a second consecutive year, the International Energy Agency (IEA) said, Trend reports.
According to the agency, this means that its total oil output, including condensates and NGLs, would be limited to around 10.9 mb/d.
Meanwhile, Saudi Arabia saw a drop in oil deliveries by 160,000 b/d year-on-year in December, wrapping up a year of consistent demand. This decrease was mainly because of slower activity in the petrochemical sector, where demand for LPG/ethane declined by 70,000 b/d, the IEA explained.
However, gains were observed in gasoil, gasoline, and jet/kerosene, each increasing by about 30,000 b/d. Nevertheless, oil consumption is expected to bounce back this year by 90,000 b/d, as the outlook for the petrochemical industry improves alongside better economic conditions.
Unlike most other major economies, Saudi Arabia is anticipated to experience a significant GDP growth of 5 percent year-on-year in 2024, contrasting with the 1 percent decline seen last year, the IEA noted. This economic rebound is primarily driven by non-oil sectors, as the Kingdom ramps up spending on various infrastructure projects.