The post Saudi oil exports to jump 500K bpd as output rises and local demand fades appeared on BitcoinEthereumNews.com.

Saudi Arabia is releasing 500,000 extra barrels of crude per day into the market this month. The reason? Production is going up, and the need to burn oil at home is falling fast now that summer is cooling down. This comes at a time when global traders are already worried the oil market is heading for a glut. The added supply is expected to grow even more through the rest of this year and into 2026. That’s partly because Saudi Arabia is launching a massive natural gas project that will help stop using oil locally and send more of it abroad. The increase matters because Saudi domestic demand usually spikes during the hottest months when the kingdom burns oil to power air conditioners. But this year, that demand was unusually high, holding back exports and keeping prices supported. With temperatures dropping, that buffer is disappearing. Saudi cuts crude burn while OPEC+ lifts output Oil burned for electricity in Saudi Arabia jumped to over 900,000 barrels a day in August, the highest since at least 2009. Kpler projects it will fall by a third in September and drop under 400,000 barrels per day in October. That alone is sending hundreds of thousands of barrels back into global circulation. At the same time, Saudi Arabia is increasing its production quota. It’s leading OPEC+’s push to bring back previously capped output. The producer group is counting on strong demand to keep prices stable, but that may not happen. “We expect global oil demand to have set a peak for the year in August, with temperatures in the Middle East slowly declining, and a peak in travel in the northern hemisphere,” said Giovanni Staunovo, an analyst at UBS Group AG. He said oil use will “modestly decline over the coming months.” Oil prices are…

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Filed under: News - @ September 11, 2025 6:32 pm