To what extent are Saudi Arabia's strategic oil reserves sufficient for its customers?

Last update: On Sunday Muharram 1441 AH Sep 15, 2019 KSA 4:25 PM – GMT 1:25 PM
Publication date: On Sunday Muharram 1441 AH September 15, 2019 KSA 11:17 – GMT 08:17

SOURCE: English

RIYADH – Saudi Arabia will use its large oil stocks to compensate its customers in the aftermath of the attack on two major oil facilities in the kingdom, Energy Minister Abdulaziz bin Salman said Sunday.

Figures from the Joint Data Initiative for oil producing countries "Judy" showed that Saudi oil stocks in the country and abroad reached 188 million barrels at the end of June latest.

By calculating the production deficit of 5.7 million barrels a day due to terrorist attacks, stocks are enough to offset this figure for 33 days.

Saudi stocks are spread between Kingdom sites and others in Egypt, Japan and the Netherlands.

It should be noted that Saudi Arabia has reduced its stocks in recent years, having reached 330 million barrels by the end of 2015.

The Saudi energy minister, Prince Abdulaziz bin Salman, said the terrorist act temporarily halted production at the Abqaiq and Khurais factories, according to preliminary estimates. 50% of the company's production, but part of the decline will be compensated for its customers by means of stocks.

The minister said the explosions also shut down associated gas production of about 2 billion cubic feet a day, used to produce 700,000 barrels of natural gas liquids, which would reduce ethane supply and natural gas liquids up to about 50%.

Regarding local supplies, the minister pointed out that this attack had no impact on the supply of electricity and water from fuel, nor on the supply of the local market. fuel or casualties among the workers at these sites until now. He developed an evaluation of the implications.

Saudi Basic Industries Corp. (SABIC) announced today a shortage of certain raw materials (variable rates and average of about 49%) for some of its subsidiaries located in the Kingdom of Saudi Arabia from Saturday, September 14, 2019 .

The Company is currently evaluating the latest effects to determine the financial impact, but also the subsequent disclosure of significant developments in accordance with applicable procedures and regulations.