Pakistan investor confidence likely to rise as Saudi Arabia extends $3bn deposit

RIYADH: Top oil exporter Saudi Arabia’s July crude oil exports gained for a second-straight month to their highest in more than two years, data from the Joint Organisation Data Initiative showed on Monday.

The Kingdom’s exports rose 2.5 percent to 7.38 million barrels per day in July — highest since April 2020 — from 7.20 million bpd in June.

The country had raised its July crude prices for Asian buyers to higher-than-expected levels amid concerns about tight supply and expectations of strong demand in summer. It had also raised its OSP for European and Mediterranean buyers, but kept US differentials unchanged.

Saudi Arabia was India’s No. 3 supplier in July, and also retained its spot as the biggest exporter to China during the first half of the year.

Saudi production also climbed to its highest in more than two years to 10.815 million bpd from 10.646 million bpd in the previous month.

The Kingdom’s domestic crude refinery throughput fell about 3 percent to 2.763 million bpd in July, while oil products exports stood at 1.429 million bpd.

Earlier this month, the Organization of the Petroleum Exporting Countries and its allies led by Russia agreed on a small oil production cut to bolster prices that have slid on fears of an economic slowdown.

Monthly export figures are provided by Riyadh and other OPEC members to JODI, which publishes them on its website.

Daily trading

Oil edged down slightly on Monday, pressured by expectations of weaker global demand and by US dollar strength ahead of possible large increases to interest rates, though supply worries limited the decline.

Central banks around the world are certain to increase borrowing costs this week to tame high inflation, and there is some risk of a full 1 percentage point rise by the US Federal Reserve.

“Ideas that continued rate increases will slow world crude demand and keep upward pressure on the US dollar is triggering long liquidation in both crude and natural gas this morning,” said Dennis Kissler, senior vice president of trading at BOK Financial.

Brent crude for November fell 56 cents to $90.79 a barrel, a 0.6 percent loss by 9:58 a.m. ET (14:58 GMT). US West Texas Intermediate for October eased 47 cents, or 0.6 percent, to $84.64 per barrel.

Oil also came under pressure from hopes of an easing of Europe’s gas supply crisis. German buyers reserved capacity to receive Russian gas via the shut Nord Stream 1 pipeline, but this was later revised and no gas has been flowing.

Crude has soared this year, with the Brent benchmark coming close to its record high of $147 in March after Russia’s invasion of Ukraine exacerbated supply concerns. Worries about weaker economic growth and demand have since pushed prices lower.