Saudi Oil Exports Rise Amidst Legal Trouble for UK Energy CEO

November 19, 2024

11:13 AM

Reading time: 3 minutes


Saudi Arabia's crude oil exports rose by 80,000 barrels per day (bpd) in September, reaching 5.75 million bpd, the highest in three months, according to the latest data from the Joint Organizations Data Initiative (JODI).

Saudi Arabia, the world's largest oil exporter, saw a slight dip in its overall oil production, which fell by 17,000 bpd to 8.98 million bpd in September. However, refinery runs surged to a four-month high of 2.756 million bpd, up by 35,000 bpd from the previous month. This is consistent with the Kingdom's commitment to maintaining oil production levels around 9 million bpd in line with OPEC+ production cuts and a voluntary reduction of 1 million bpd.

As part of the OPEC+ agreement, Saudi Arabia has delayed its planned production increase until January 2025. The group intends to increase supply by 180,000 bpd starting that month. However, the outlook for global oil demand remains weaker than expected, with OPEC revising down its growth forecast for both 2024 and 2025.

Saudi Arabia is also set to deliver fewer crude barrels to China in December, the world's largest crude importer. Due to weak demand, Saudi crude deliveries to China are expected to drop to 36.5 million barrels, down from 37.5 million barrels in November and 46 million barrels in October.

Legal Trouble for UK Oil CEO Over Alleged Embezzlement

In a separate development, Francesco Mazzagatti, the CEO and majority owner of UK-based Viaro Energy, is facing a lawsuit for allegedly embezzling funds related to sales of Iranian petrochemicals. Mazzagatti, who previously led Singapore-based Alliance Petrochemical & Investment (API), is accused of diverting $151.6 million (143.8 million euros) from the sale of products belonging to Mehr Petrochemical Company, which was designated by the U.S. Treasury in 2023 for links to a "shadow banking" network.

The lawsuit, filed in London's High Court, claims Mazzagatti forged documents to funnel money to a separate company he set up in the UAE. The legal action also alleges that the embezzled funds were used to finance Viaro Energy's 2020 acquisition of RockRose Energy, as well as other investments in the UK gas sector.

Mazzagatti denies the allegations and asserts that the lawsuit is part of a plot orchestrated by a former associate, Arshiya Jahanpour. The case is still ongoing, and the UK regulators are expected to review the details of the deal with Shell and ExxonMobil concerning Viaro Energy's acquisition of assets in the Southern North Sea.

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