Saudi crude exports fall for third straight month to a record low, data shows

Crude oil exports from Saudi Arabia fell for a third straight month in May to a record low, data from the Joint Organizations Data Initiative (JODI) showed on Tuesday, with the U.S.-Iran conflict disrupting shipments across the Gulf.

Exports fell to about 3.434 million barrels per day in May, from 3.986 million bpd in April.

The country’s crude oil production stood at 6.560 million bpd in May, rebounding from a record low of 6.316 million bpd hit in April.

The JODI data for Saudi Arabia’s crude oil exports and output extends back to 2002, the earliest period for which data is available. Monthly export figures are provided by Riyadh and other members of the Organization of the Petroleum Exporting Countries (OPEC) for the JODI to publish them on its website.

“The drop in Saudi exports was likely still influenced by the conflict in the Middle East, but higher domestic crude burn is likely another factor limiting crude exports,” said UBS analyst Giovanni Staunovo.

Saudi Arabia’s refinery crude throughput in May rose by 0.175 million bpd to 2.386 million bpd, from April’s 2.211 million bpd, the JODI data showed. Direct crude burning increased by 107,000 bpd to 647,000 bpd.

On the geopolitical front, Yemen’s Houthis said on Monday that they would impose a naval blockade on Saudi Arabia, opening a potential new front against the United States in its war with Iran and raising the threat to global energy supplies and trade beyond the Gulf.

The Saudi foreign ministry condemned allegations by the Houthi military spokesperson that the kingdom was besieging Yemen and imposing a maritime blockade. Saudi would take “all necessary measures” to protect its ships, the ministry said in a statement.

Meanwhile, the International Energy Agency predicts that global oil supply will expand by 7.5 million bpd next year after a 3.7 million bpd contraction this year, but that is contingent on an increase in traffic through the Strait of Hormuz.