Saudi Arabia hikes PE production volumes on increased availability of associated gas

18-Jul-11

Saudi Arabia has raised PE production volumes on increased availability of associated gas. Rising oil production in Saudi Arabia has resulted in bigger volumes of polyethylene (PE) being delivered into Asia-Pacific markets, as per ICIS blog. Estimates for June production range from 9.4-9.8 mln bpd, up from around 9 mln bpd in May. Saudi Arabia is producing more oil in order to pay for higher social costs following the Arab Spring. The International Energy Agency believes that Saudi Arabia has continued to hike production in July, possibly reaching 10 mln bpd. This would, in theory, enable the kingdom to once again run its crackers at 100% due to the greater availability of associated gas.