Saudis to boost oil exports to record 10 million barrels a day By Bloomberg | March 17, 2020, 6:31 a.m. | Share:
- International oil operations Image: Saudi Aramco Saudi Arabia plans to boost oil exports to a record above 10 million barrels a day from May as the kingdom taps a new field, an official at the Ministry of Energy said.The export boost shows Saudi Arabia is determined to carry on with its policy of pumping-at-will after Russia walked out from the OPEC+ alliance. Moscow and Riyadh are engaged now in a price war that has sent Brent crude, the global benchmark, below $30 a barrel and prompted energy companies to announce big spending cuts.“The Kingdom of Saudi Arabia will utilize the gas produced from the Fadhili gas plant to compensate for around 250,000 barrels a day of domestic oil consumption, which will enable the Kingdom to increase its crude exports during the coming few months to exceed 10 million barrels a day,” the official said, asking not be identified discussing the plan publicly.Saudi Arabia has told refiners it plans to produce 12.3 million barrels a day in April, a record, although the kingdom hasn’t said how much oil it will export during the month. According to the International Energy Agency, Saudi Arabia consumes an average of 3.15 million barrels a day, suggesting that exports would be capped at slightly above 9.15 million barrels a day.In a sign that the kingdom is preparing for a long battle, despite the heavy economic cost, state-owned oil giant Saudi Aramco on Monday indicated that Riyadh could weather cheap oil.“We are very comfortable with $30,” Khalid Al-Dabbagh, the finance director of Aramco, told investors March 16 during the company’s maiden annual results conference call. “In a nutshell, Saudi Aramco can sustain very low oil prices and can sustain it for a long time and that is, especially the case compared to others in the sector,” he added.© 2020 Bloomberg L.P.
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Mar 17, 2020
Saudis to boost oil exports to record 10 million barrels a day
By Bloomberg |March 17, 2020, 6:31 a.m. |Share:
International oil operations
Saudis to boost oil exports to record 10 million barrels a day By Bloomberg |March 17, 2020, 6:31 a.m. |Share: International oil operations