- Saudi Arabia’s average oil production increased from the beginning of 2022 until the end of August by 20%, the Kingdom’s output reached around 10.5 million barrels per day, higher by 1.8 million barrels per day compared to the same period last year.
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The country expanded its oil output to 11.051 million bpd in August, in line with the production quota allocated by the larger OPEC+ group. Saudi Arabia pumped an additional 236,000 bpd of oil during the month, surpassing the 11 million bpd production level for the first time since April 2020.
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Saudi Arabia expects the real GDP growth to reach 8% in 2022, driven by real GDP growth in oil activities and the sustained increase in non-oil activities, which is expected to record growth of 5.9% in 2022.
Why it matters
According to the OPEC monthly report on oil markets in August of 2022, global demand for oil is expected to register a growth of 3.1 million barrels per day compared to last year, to reach 100.03 million barrels per day. This is despite ongoing global uncertainty with war and rising inflation. Saudi is looking to beef up its output capabilities, it presently has a nameplate capacity of almost 12 million bpd. And is expanding some of its largest offshore fields to achieve a maximum sustainable capacity of 13 million bpd by 2027.
