Saudi Arabia plans to increase oil exports to 100 million barrels per day

Saudi Arabia plans to increase oil exports to 100 million barrels per day

Saudi Arabia plans to increase oil exports from the current year to 10.6 million barrels a day.

According to a foreign news agency 'Reuters' report, the Saudi Ministry of Energy officials said the decision was made due to a reduction in other sectors, including the use of oil for energy in the country.

It is to be noted that Saudi Arabia's three-year agreement with Russia's oil-exporting countries (OPEC) recently concluded, after which it was announced to increase crude oil exports.

oil

The Saudi official said crude oil exports would start in May, which would be around 0.6 million barrels a day.

He said that "the use of natural gas as a substitute for crude oil for gas production has resulted in the decision to increase its export."

He said the demand for petroleum products locally has dropped dramatically due to the Coronavirus.

Earlier, Saudi Arabia had said that Aramco, the country's largest company, had been directed to supply a record 2.3 million barrels on a daily basis.

Government sources said that these decisions are trying to maintain the oil-related strategy.

Saudi Arabia produces more than a tenth of the world's crude oil, but demand is shrinking due to global changes.

According to the report, Aramco will release its strategy regarding oil exports from April 1 to April 5.

It is to be noted that after Saudi Arabia cut prices earlier this month and increased crude oil production in April, oil prices in the global market fell by 30%.

Saudi Arabia announced a price cut after Russia rejected a proposal to cut OPEC production to stabilize a market worried by the spread of the Coronavirus globally.

Saudi Arabia had said that in April, the cost of selling all grade crude oil would be reduced from $ 6 to $ 8 a barrel.

Saudi Arabia, Russia, and other major oil-producing countries have previously fought for their share in the market in 2014 and 2016.

Tags

Oil prices

Related Posts