World

Saudi industrial production dips in September amid decline in oil refining activity

Industrial output down by 0.3% year-on-year as manufacturing and oil refining slow; stability in mining and extended OPEC+ cuts shape sector outlook.

Saudi industrial production dips in September amid decline in oil refining activity

Industrial Production Index registered a modest year-on-year decrease of 0.3%.

Shutterstock

Industrial production in Saudi Arabia declined in September, primarily impacted by a slowdown in oil refining activity.

The Industrial Production Index registered a modest year-on-year decrease of 0.3%.

Mining activity remained steady in September, with oil production holding at approximately 9 million barrels per day.

Industrial production in Saudi Arabia declined in September, primarily impacted by a slowdown in oil refining activity. Data released by the General Authority for Statistics on Sunday showed that the Industrial Production Index (IPI) registered a modest year-on-year decrease of 0.3%.

The data indicated that mining activity remained steady in September compared to the same period in 2023, with Saudi oil production holding steady at approximately 9 million barrels per day. Meanwhile, the manufacturing sector recorded a 0.5% annual drop, becoming the largest contributor to the overall decline in the index.

Saudi Arabia continues to uphold oil production restrictions following an agreement with eight OPEC+ countries to extend additional voluntary cuts of 2.2 million barrels per day through the end of the year. These cuts are expected to be phased out gradually on a monthly basis beginning in January 2025.

Among industrial activities, the coke coal and refined petroleum products sector saw the largest production decline, falling by 12.3% and exerting the greatest downward pressure on the index. Conversely, the food industry registered a 12.3% increase, and chemical production volumes rose by 2%.

In comparison, the IPI had recorded a 1% year-on-year increase in August 2024, driven by growth in mining, manufacturing, and supplies of electricity, gas, steam, and air conditioning.

Comments

See what people are discussing

More from Business

Pakistan equities outshine all major asset classes in 2024

Pakistan equities outshine all major asset classes in 2024

The KSE-100 delivered a 75% return during the year

More from World

China says it 'firmly opposes' US military aid to Taiwan

China says it 'firmly opposes' US military aid to Taiwan

Taiwan recently received first new tanks in 30 years