Saudi Arabia Adds 500,000 bpd to Exports as Oil Demand Slides

- Saudi Arabia boosts crude exports as domestic use dwindles. - Global oil markets shift as OPEC+ raises production. On September 11, 2025, Cryptopolitan reported that Saudi Arabia is increasing its crude oil exports by 500,000 barrels per day. This surge is due to rising production and a drop in local demand as seasonal temperatures cool. The kingdom’s domestic oil consumption peaked in August at over 900,000 barrels per day, its highest level since 2009. Consumption has since declined sharply as the need for electricity generation subsides. Projections indicate that domestic use could fall by a third in September and continue decreasing through October, a decline that will free up significant volumes for the global market. This development aligns with the broader OPEC+ strategy, led by Saudi Arabia, to boost oil production. However, analysts have contrasting views on the potential implications. Giovanni Staunovo of UBS Group AG suggests that global oil demand likely peaked in August and will marginally decrease in the months ahead. Reflecting these trends, Brent crude is currently trading at approximately $67 per barrel, a 10% decline this year, and both UBS and Goldman Sachs forecast further price drops. This forecast aligns with the International Energy Agency's prediction of a potential record surplus by 2026. Amid these forecasts, Saudi Aramco CEO Amin Nasser remains optimistic. He estimates that global demand will rise by 2 million barrels per day in the second half of the year compared to the first. The Jafurah gas project, which aims to reduce domestic crude oil use, bolsters his optimism. The project will initially replace 35,000 barrels per day and is expected to free up an additional 350,000 barrels per day for export by 2030. Meanwhile, traders are evaluating the supply increase alongside several factors, including China’s oil import levels, geopolitical tensions in Ukraine and the Middle East, and shifting global demand. Adding to the market's uncertainty, recent U.S. data revealed an unexpected rise in crude inventories, while reports suggest that Saudi Arabia plans to increase its oil shipments to China in October.