Three factors that will boost Saudi Arabia's oil output

Three factors that will boost Saudi Arabia's oil output

Baku, Azerbaijan, April 29

By Aygun Badalova - Trend:

Analysts of the US JP Morgan bank expect Saudi Arabian oil output to increase to 10.2 million barrels per day in 2015, up 0.5 million barrels per day year over year.

Saudi Arabia is the largest OPEC member producer.

"The rapid increase in Saudi Arabian production in recent months has prompted a fair degree of skepticism over its sustainability and the potential for higher volumes to weigh on prices," analysts said in a report, obtained by Trend.

Analysts mentioned with the reference to Saudi Arabia's official estimate, that the country's crude output in March stood at 10.3 million barrels per day, up 0.7 million barrels per day mom (Month-over-Month).

This represents the highest monthly output in at least 20 years.

Analysts see three factors contributing to the rise in Saudi crude output.

First, analysts estimate that country's exports could average 7.3 to 7.4 million barrels per day this year, on the back of surging Asian refinery demand.

Second, with the commissioning of the second JV Export refinery crude runs are expected to average 2.3 million barrels per day, up 0.3 million yoy (year-over-year).

"Higher runs will likely contribute higher fuel oil output on the margin, as the new refinery's upgrading units are slowly brought to full operating rates later in the year," analysts said.

Third, analysts see increased availability of fuel oil from the refineries as meeting much of the call for higher power demand within Saudi Arabia this year.

JP Morgan analysts see potential for Saudi crude exports to average 7.4 million barrels per day in 2015, a substantial pick up from the low point of 6.7 million barrels per day in August 2014.

Saudi Arabian crude exports have decreased significantly in the US, according to the analysts. They expect the exports to average near 800,000 barrels per day in the coming months. Exports to Asia may be close to current strong levels, analysts believe.

OPEC oil supply reached 30.63 million barrels per day in March, which was the highest level since October. Saudi Arabia's oil production amounted to 10.01 million barrels per day last month compared to 9.663 million barrels per day in February, according to OPEC's latest oil market report.

Oil demand in Asia is strong and Saudi Arabia is ready to supply any more crude needed, Reuters reported citing the country's oil minister Ali al-Naimi.

The minister also said that Saudi Arabian oil output would probably remain about 10 million barrels per day.

JP Morgan's forecasts for Saudi Arabia's oil production and exports (mln bpd)

 
1Q15
2Q15
3Q15
4Q15
Production
10
10.3
10.4
10.3
Exports
7.4
7.4
7.2
7.5

Follow the author on Twitter: @AygunBadalova

Subscribe to Trend in Google News! Subscribe
Truck collides with passenger bus in Baku (PHOTO)
Truck collides with passenger bus in Baku (PHOTO)
Nizami Ganjavi International Center hosts side event as part of UN General Assembly's 76th session  (VIDEO)
Nizami Ganjavi International Center hosts side event as part of UN General Assembly's 76th session (VIDEO)
Indian gov't says 75 pct of stolen heritage returned during last seven years
Indian gov't says 75 pct of stolen heritage returned during last seven years
Loading Bars
Latest
Turkey, Italy work together for regional peace, stability: FM
Tripartite deal to solve main part of Iran’s gas problem - Chief of Staff of Iranian President
Oil production on Turkmen Cheleken peninsula exceeds planned volume
State Customs Committee discloses TOP-5 trade partners of Azerbaijan
State Customs Committee reveals trade turnover between Azerbaijan and China
Azerbaijani Defense Ministry presents weekly review (VIDEO)
Georgia reports 3,410 coronavirus cases, 4,732 recoveries, 46 deaths
At least 14 civilians mistakenly killed by Indian forces in remote northeast
Iranian currency rates for December 5
Kyrgyzstan confirms 42 new COVID-19 cases
New Year budget to depend on activities’ scale - Tbilisi Mayor
Iran’s SPGC shares data on production of its fifth refinery
Baku International Sea Trade Port unveils cargo transshipment for 10M2021
Pakistan receives $3 billion loan from Saudi Arabia
VISA open to co-op with all key players in Azerbaijan’s transport sector (Exclusive)
6.1-magnitude earthquake rattles southern Philippines
Soyuz-ST-B with 2 Galileo satellites launched from Kourou spaceport
Dutch former queen Beatrix tests positive for COVID-19
10 mln French have received COVID-19 booster shots: minister
Iran abandoned any compromises in latest nuclear talks - U.S.
Chile reports first case of Omicron variant
White House confirms plans of holding video call between Biden and Putin on December 7
Vienna talks on Iran nuclear deal to resume next week - Russian Foreign Ministry
1 killed, 40 injured following volcanic eruption in Indonesia
Body of another Armenian serviceman found in Azerbaijan's Khojavand
Bitcoin tumbles 9.95% to $48,397.56
Passenger transportation via Iran's Kermanshah International Airport declines
UK records another 42,848 coronavirus cases
Explosion occurred near Iran's nuclear facility
Azerbaijan hands over to Armenia body of saboteur neutralized in attack on Azerbaijani serviceman in Khojavand
Azerbaijan talks entreprises to be commissioned at Aghdam Industrial Park
Major terrorist attack against rally with Erdogan's participation prevented in Turkey
Great number of EU, NATO countries interested in Turkish drones - Cavushoglu
Georgian PM meets with President of FIBA Europe
OSCE MG ready to host meeting between Azerbaijani and Armenian FMs
Value of Azerbaijan's export to US surges for 10M2021
Prices on several main food products in Kazakhstan continue to lower
Agrarian sector of ‘smart village’ in Azerbaijan’s Zangilan to be combined modern urban planning – minister
Azerbaijan discloses project cost of agropark in Yevlakh (PHOTO)
Buy/sell operations at Iran Mercantile Exchange down
Saudi Arabia, France agree to strengthen cooperation
Biden, Putin to hold video call on Tuesday
India, Australia are natural economic partners, says Tony Abbott
Azerbaijan receives mine maps of its territories liberated from Armenian occupation
Erdogan discusses humanitarian aid with Red Crescent, Red Cross
Uzbekistan intends to increase dried fruit exports to China
No Omicron strain detected in Georgia - NCDC Head
Aligarh’s Areeba shoots to fame, breaks stereotypes about Muslim girls
Iran’s Bahar Azadi gold coin price skyrockets
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,406 more COVID-19 cases, 1,787 recoveries
Tactical exercises held in Azerbaijan's commando military unit - MoD (PHOTO/VIDEO)
New composition of Supervisory Board of Azerbaijan Industrial Corporation approved
Iran reveals COVID-19 data for December 4
President Ilham Aliyev sends congratulations to heads of Thailand, Finland
France, Europeans working to open joint mission in Afghanistan - Macron
Ranking of natural gas importers from Azerbaijan
Uzbek Commodity and Raw Materials Exchange reveals volume of its transactions
SOCAR Georgia Gas announces tender on gas stations restoration
Iran eyes increase in passenger transportation via Yazd Shahid Sadooghi Airport
Azerbaijan reveals oil exports to Canada in 10M2021
Weekly review of main events in Azerbaijan's transport sector
Turkmenistan’s president approves anti-crisis program for 2022
Azerbaijan’s liberated territories have high potential for solar energy - RES agency
Weekly review of key events in Azerbaijan's ICT sector
Russian company to help automate, digitalize processes in Uzbek energy sector
Iran reaches increase in load/unload operations in Shahid Bahonar port
Top 10 Azerbaijani oil importers
MFA reveals reason why Armenia-Azerbaijan ministerial meeting didn't take place
Kazakhstan talks construction of wind power plants in Kostanay region
Azerbaijan achieves practical results to restore hydropower plants in liberated lands - agency's CEO
Azerbaijan’s metallurgical company notes increases in steel production over 9M2021
Iran also to be able to take advantage of Zangazur corridor – ex-Iranian ambassador to Azerbaijan
Russia-UAE trade turnover hits fresh all-time high surpassing $4 bln - Mishustin
Kazakhstan’s Almaty Power Plants to buy pumping, ventilation equipment via tender
Azerbaijan discloses oil exports to Ukraine over 10M2021
Azerbaijan unveils volume of oil exports to Belarus in first 10M2021
Georgian Railway shares updated report on income within 9M2021
Azerbaijan’s 10M2021 oil exports to UK revealed
Kazakhstan to timely fulfill its obligations under COP26 – PM
Azerbaijan opens investment tender to privatize Sumgayit Construction Service company
Iran finds way to supply its far north, north-east provinces with gas
Georgia releases COVID-19 data for December 4
LUKOIL Uzbekistan Operating LLC opens tender for supply of shut-off and control valves
Mikheil Saakashvili not to be treated abroad – Georgia's minister
Russia offers Azerbaijan to switch to barcoding for fruit, vegetables exports
Tripartite gas swap deal with Turkmenistan, Azerbaijan, may help Iran kill two birds with one stone
Azerbaijan Mortgage and Credit Guarantee Fund issues record amount of loans in 10M2021
Goods movement across Azerbaijani-Russian border to be accelerated
Azerbaijani oil prices increase
Kazakhstan boosts trade with Romania over 9M2021
Weekly review of Azerbaijan's oil & gas sector
Weekly review of Azerbaijani precious metals market
Weekly review of Azerbaijani currency market
Treatment of servicemen injured in helicopter crash of Azerbaijan’s State Border Service continues
Turkey to support Azerbaijan in installing seismic stations in Karabakh
Iran aims to increase local solar power production
Gamaleya Center ready to accept state order for up to 10 mln sets of Sputnik M
Kazakhstan’s Intergas Central Asia to buy welding equipment via tender
Georgia’s export of oil products increases
All news