Saudi Arabia’s refinery production reached 2.54 million barrels per day (bpd) in December, marking a 5 percent increase compared to the same period last year, according to recent industry data. The Kingdom’s robust output was driven by increased fuel oil production, which rose by 7 percent to 464,000 bpd, accounting for 18.2 percent of the total refinery output. Meanwhile, diesel, which makes up the largest share of refinery production at 40 percent, saw a slight 5 percent decline.
Motor and aviation fuel production also experienced growth, rising 5 percent year-on-year, with the combined sector contributing to 24.7 percent of total output. However, refined crude exports saw a modest 1 percent drop, reaching 1.13 million bpd in December. Diesel exports remained the primary contributor, making up 36 percent of total refined shipments, while motor and aviation gasoline contributed 20 percent and fuel oil 15 percent.
Despite a slight dip in domestic demand, which fell by 26,000 bpd to 2.29 million bpd, Saudi Arabia’s overall crude production stood at 8.91 million bpd in December, reflecting a small annual decline of 0.44 percent. Crude exports also decreased by 2.57 percent, amounting to 6.15 million bpd.
The decline in crude exports comes as OPEC+ members, including Saudi Arabia, have continued efforts to manage oil output through coordinated cuts. In December, OPEC+ announced a delay in the planned increase of oil production by three months, pushing the rise in output to April. This decision extended the unwinding of production cuts through 2026 and was made in response to global demand concerns and high production levels from countries outside the group.
As OPEC+ works to stabilize the global oil market, the group aims for gradual increases in output while maintaining the flexibility to adjust based on market developments. Their long-term strategy focuses on ensuring a balanced supply-demand scenario to support stable oil prices.
Saudi Arabia has also been focusing on enhancing energy efficiency, with direct crude oil burn in power generation declining by 8 percent year-on-year to 279,000 bpd in December. This decrease is attributed to lower energy consumption due to cooler weather, as well as the country’s ongoing efforts to improve energy efficiency across various sectors.
During the February Egypt Energy Show in Cairo, Saudi Energy Minister Prince Abdulaziz bin Salman emphasized the Kingdom’s commitment to energy cooperation with Egypt. Saudi firms are set to develop five major renewable energy projects in Egypt, including solar and wind farms with a combined capacity of 1.696 gigawatts. This initiative, valued at SR6.2 billion ($1.65 billion), underscores the growing partnership between the two nations in the energy sector. Additionally, ACWA Power has signed a deal for a large-scale 2GW wind project in South Hurghada, marking it as Egypt’s largest wind energy initiative.
Further enhancing regional energy collaboration, the Saudi-Egypt Electricity Interconnection Project, with an investment of SR6.7 billion, will enable the exchange of 3,000 MW of electricity. These projects are key components of Saudi Arabia’s broader strategy to promote sustainable and efficient energy use, aligning with its vision for regional and global energy cooperation.
