DUBAI – Saudi Arabia is to boost its oil exportation to 10 million barrels per day by May, a spokesperson for the Ministry of Energy said.
The ministry said that it would use the gas produced by the Fadhili gas plant to “compensate for around 250,000 b/d of domestic oil consumption,” the source told al-Arabiya TV.
Therefore, the Kingdom will be able to increase its crude exports during the coming few months to exceed 10 million bpd.
The announcement comes a day after the international benchmark Brent crude fell below $30 a barrel for the first time since 2016.
The state-run Aramco, the biggest in the world, said it was “very comfortable” with $30 oil.
On Wednesday, Aramco announced it would increase its output up to 13 million barrels per day starting in April.
The ongoing oil price war between Saudi and Russia is escalating as both countries failed to reach an agreement amid a looming economic global slowdown and potential slump in oil demand.
The shock to global oil and financial markets from the coronavirus outbreak led Riyadh to call for production cuts, but Moscow rejected the Saudi approach and last weekend’s meeting of the OPEC+ countries ended without agreement.
Gulf countries, in particular, are already suffering from a slowdown attributable to the coronavirus, or COVID-19, as China – where the outbreak started – is a major buyer of oil from the Gulf and has reduced purchases in line with a reduction in economic activity.
Financial markets in the Gulf region have seen paper losses of roughly $300 billion in the last few days. Worldwide, losses have surpassed $7 trillion.