20 May | Oil

Saudi Arabia to increase oil burning during summer period — Reuters

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.

Elena Berseneva MarketCheese
Period: 11.07.2025 Expectation: 920 pips
GBPUSD falls as UK GDP unexpectedly shrinks
11 July 2025 44
Brent sell
Period: 17.07.2025 Expectation: 150 pips
OPEC's gloomy forecast drags Brent crude prices lower
11 July 2025 56
Period: 17.07.2025 Expectation: 26000 pips
Institutional investor demand could push ETHUSD to 3,000
10 July 2025 73
Period: 16.07.2025 Expectation: 2000 pips
USDJPY prepares to retest 148 Level
10 July 2025 60
Period: 16.07.2025 Expectation: 900 pips
NVIDIA shares rise amid global AI infrastructure investments
09 July 2025 92
Period: 15.07.2025 Expectation: 800 pips
Breaking downtrend could push USDCAD to 1.375
09 July 2025 62
Go to forecasts