Saudi Arabia to increase oil burning during summer period — Reuters

According to analysts quoted by Reuters, Saudi Arabia will burn more oil for power generation this summer due to increased crude production and higher heating oil prices. This could help balance global crude oil supply after OPEC+ production quotas are lifted.

Wood Mackenzie expects Saudi Arabia to consume 465,000–470,000 barrels of oil per day for power generation this year. This is 10,000 to 15,000 barrels more than in 2024. FGE's estimate is 423,000–428,000 barrels per day, also an increase from last year.

Reuters reports that Middle Eastern countries typically burn oil to generate electricity in periods of hot weather, from June through August.

Wood Mackenzie predicts that lower oil prices and the rising cost of high-sulfur fuels will shift some producers' attention from heating oil to crude. Vortexa analysts predict that in such an environment Saudi Arabia may have an incentive to produce more oil for energy generation rather than exporting it. Meanwhile, high prices are likely to limit the country's consumption of heating oil for this purpose through 2025.