Reuters, who spoke to an industry source from the Kingdom, has announced that Saudi Arabia plans to cut its August crude oil exports by 600,000 barrels per day. The cut is a direct result of peak domestic consumption during the summer, and if the August cuts happen, this will be the biggest since the start of 2017. Also, the reduction is in line with Saudi Arabia’s output cut commitment under the international agreement sealed in November of 2016 in a bid to rebalance the oil market.

According to the source, the United States will receive less than 800,000 barrels per day of Saudi crude in August, down from an average 1.154 million barrels per day in April.

Shipments of Saudi crude oil to Asia will be roughly 3.5 million barrels per day, which is down by 200,000 barrels per day from July. Exports to Europe will be reduced by 70,000 barrels per day to 520,000 barrels per day. On the other side of the equation, oil trading companies will get 780,000 barrels per day, which is down by 200,000 barrels per day. All in all, Saudi Arabia’s crude exports in August will be 6.6 million barrels daily.

In June, Saudi Arabia pumped 10.07 million barrels per day above its quota. As reported by the source, the rise was caused by higher domestic demand during the summer season. Under the terms of the OPEC/non-OPEC deal to cut output, Saudi Arabia vowed to cut 486,000 barrels per day off it’s October 2016 level production and keep output at 10.058 million barrels per day.

OPEC released its Monthly Oil Market Report today which illustrated that Saudi Arabia produced 9.95 million barrels per day, according to secondary sources, below its output quota. Total production, the report showed, came in at 10.07.

Keep in mind that the report focuses on output numbers, not exports. As reported by ClipperData, OPEC’s exports – including Saudi Arabia’s exports – increased in June, and the Cartel exported more crude oil in June than it did in October, while total global crude exports are over 10% higher than they were years ago.

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Author Caroline Harris

About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.