Saudi Arabia's oil consumption soars

An increase in oil demand by Saudi Arabia could put the oil industry under pressure as the amount it exports globally narrows.

The kingdom is one of the world's biggest producers and exporters of oil, last month pumping around 9.7 million barrels a day, a rapid increase from 8.89 million b/d in May.

However, the country is also experiencing a surge in demand which threatens to overtake its increase in oil production.

Demand on the oil industry from Saudi rose by 75 per cent in the last ten years due to strong economic and industrial growth, but this year alone its consumption grew by 5.6 per cent - four times the global average of 1.4 per cent.

"The slight increase in both production and exports doesn't surprise me, as global oil markets were well supplied in May," John Sfakianakis, the chief economist at Riyadh-based Banque Saudi Fransi, told Gulf News recently.

"If Saudi Arabia needs to keep production at a high level this summer, it will be due to higher local consumption and not higher global demand."