Saudi Oil Production Jumps to 10.563 Million Barrels a Day in October
Key Facts
Saudi Arabia told OPEC that its crude oil production rose to 10.563 million barrels a day in October, from 8.372 million in September, according to data cited by Investing.com from the organization’s report. The increase marks a strong recovery in Saudi supply in a single month, bringing the kingdom’s output to its highest level since February 2026. Saudi Arabia reported production of 10.882 million barrels a day to OPEC at the time. October’s figure comes as Gulf supply and exports regained a substantial share of prewar levels, according to International Energy Agency data for September. The increase in production coincides with Aramco’s decision to cut the price of its flagship crude for Asian buyers of December cargoes, signaling a market with ample supply and weak spot premiums.
Aramco cut the official selling price of Arab Light crude for December shipments to Asia by 2 dollars a barrel from November, to a discount of 6.50 dollars to the Oman/Dubai average. Reuters said this was the widest discount since May 2020, when prices fell during the pandemic. Market participants had expected the company to hold prices steady or cut them by as much as 2 dollars a barrel to attract buyers. Their expectations, according to Reuters, pointed to ample supply in the Middle East and weak spot market premiums. The cut therefore came at the upper end of participants’ expectations, while the discount reached its lowest level in more than six years.
International Energy Agency data showed global oil supply rose by 2.5 million barrels a day in September to 102.3 million barrels a day, driven by Gulf producers. Crude exports from Gulf producers, led by Saudi Arabia, increased by 4.4 million barrels a day to 13.9 million in the same month. The agency said exports exceeded 75% of prewar levels. Oil flows through the Strait of Hormuz also rose by 3.7 million barrels a day to 10.9 million in September. Ship-to-ship transfers in the Gulf of Oman helped lift flows through the strait, while the return to using the East-West pipelines increased exports that bypass the strait by 970,000 barrels a day to 5.6 million.
The supply increase came as observed global oil inventories fell by 10 million barrels in September. At the end of the month, inventories were 509 million barrels below their level at the end of February. In futures trading, Brent crude settled at 92.76 dollars a barrel on November 11, compared with 91.49 dollars in the previous session. West Texas Intermediate settled at 86.53 dollars a barrel on November 11, after 86.04 dollars on November 10. September data provide context for the shift in Gulf supply, while Saudi Arabia’s reported OPEC production figure reflects October levels.