KSA - Case for MSAR24 May 2019 08:07
Looks like the case for KSA MSAR is stacking up:-
1/ During the summer months, Saudi Arabia typically experiences an increase in electricity consumption as domestic demand for air conditioning rises. Saudi Arabia relies on crude oil and other fossil fuels, such as petroleum products and natural gas, for power generation. Saudi Arabia's direct crude burn reached a record high during the summer of 2015, averaging 0.9 million b/d from June to August. In comparison, direct crude burn in the summer of 2018 was 41% lower at 0.5 million b/d.
2/In Saudi Arabia, however, fuel oil consumption rose 25% between 2015 and 2018 to 0.5 million b/d on average, according to JODI data. Some trade press reports indicate that one potential side effect of the upcoming changes to the sulfur limits in marine fuels in 2020 is that the stranded high-sulfur fuel oil could be sent to Saudi Arabia to further replace crude oil in power generation.
3/ Exports of petroleum products more than quadrupled between 2009 and 2018, from 0.4 million b/d to 2.0 million b/d. Saudi Arabia exports more diesel than any other petroleum product, averaging 0.8 million b/d in 2018.
4/Furthermore, Saudi Arabia has been cutting production beyond its agreed-upon target, meaning that as Saudi Arabia's crude oil production falls, production of associated natural gas will also decline. Declines in associated natural gas production could result in an increased need for crude oil used for power generation.
https://oilvoice.com/Opinion/31702/Saudi-Arabia-has-significantly-reduced-the-amount-of-crude-oil-used-for-power-generation