Saudi Arabia’s revenue from oil exports has slumped to the lowest level in three years, caused by a drop in prices and the kingdom’s decision to curb production.
Sales from shipments of crude oil and refined products fell to $17.7 billion in June, according to the country’s main statistics body. That’s down more than 9% year-on-year and about 12% from May.
Oil revenue remains crucial to Saudi Arabia, the de facto leader of the OPEC cartel and the world’s biggest exporter of crude. Those funds back Crown Prince Mohammed bin Salman’s drive to transform the economy with huge investments in everything from electric vehicles to semiconductors and football.
His push has been hindered by a fall in petrodollar inflows since 2022, when Russia’s invasion of Ukraine sent crude soaring to above $120 a barrel. At the time — at least for a few months — Saudi Arabia was earning $1 billion from oil exports every day.
Brent’s now trading around $76, down 6.2% this year, largely due to concerns about economic slowdowns in the US and China.
The kingdom’s had to scale back or delay some of its biggest projects, including parts of a sprawling new desert city known as Neom. It’s failed to lift prices with its strategy of cutting output.
OPEC+, which includes members of the Organization of Petroleum Exporting Countries and others such as Russia, is meant to start increasing production in the fourth quarter. BP Plc says the group will be “nervous” about that plan because of the pressure prices remain under.
Follow us on social media: