Saudi oil output hits record level in July

Saudi Arabia pumped a record 10.67 million barrels per day (mbd) of oil in July amid a surge in domestic demand during the hot summer months.

The kingdom’s output beat the previous all-time production high of 10.56 mbd in June of last year, according to data released by OPEC in its latest report.

Power demand peaks during the summer months in the Middle East, due to an increase in air-conditioning usage. Saudi Arabia – where temperatures can soar over 50 degrees Celsius – had been planning to raise oil production to 10.5 mbd this summer, a source said in April.

The kingdom’s high July output may cause friction with other OPEC members as they seek to limit production to boost prices ahead of a meeting next month in Algiers.

A similar initiative to slash crude production collapsed in April during talks in Doha, when Saudi Arabia backed out over Iran’s refusal to agree to an output freeze.

Write to Jerusha Sequeira at jerusha.s@argaamnews.com