Data from the Joint Organizations Data Initiative (JODI) released on Monday indicates that Saudi Arabia's crude oil exports fell for a second consecutive month in April, reaching a record low, as regional conflicts disrupted shipments from the Gulf.
Exports dropped to 3.99 million barrels per day (bpd) in April, down from 4.974 million bpd in March. The kingdom's crude oil production also declined to a record low of 6.316 million bpd, compared to 6.967 million bpd in March.
Giovanni Staunovo, an analyst at UBS, noted that ongoing tensions in the Middle East and restrictions on transit through the Strait of Hormuz continue to weigh on both production and exports.
He added that a temporary disruption to pipeline flows bypassing the Strait of Hormuz, caused by an attack on pumping stations along Saudi Arabia's East-West pipeline, likely contributed to the export decline in April.
Mediators reported that while the first round of talks aimed at a final peace deal between the U.S. and Iran showed "encouraging progress," tensions persist concerning Lebanon and the Strait of Hormuz.
In retaliation for airstrikes by the U.S. and Israel that began in late February, Iran has launched attacks on Gulf states, damaging key energy infrastructure and disrupting shipping in the Strait of Hormuz. The International Energy Agency (IEA) estimates the conflict has disrupted over 14 million bpd of oil production capacity in the Middle East.
JODI data also showed Saudi Arabia's refinery crude throughput decreased by 55,000 bpd in April to 2.211 million bpd, while direct crude burn increased by 210,000 bpd to 540,000 bpd.
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