São Paulo – Oil company Saudi Aramco announced on Wednesday (11) that it will increase its output to 13 million barrels per day (bpd) starting April. Arab News reported that the company received a directive from the Ministry of Energy to do so.
On Tuesday (10), Saudi Aramco had announced the plan to increase production by 300,000 bpd, to 12.3 million bpd. According to Arab News, the increase is in a bid to win market share in the global tussle over energy prices. Saudi Aramco notified its customers it would offer big discounts. The UAE also announced plans to ramp up output.
Saudi decision to increase production made price oils plunge early this week. It followed the collapse of a pact between members of the Organization of Petroleum Exporting Countries (OPEC) with Russia to cut productions in order to avoid oil price declines in the face of a weakened demand due to coronavirus. The announcement was followed by a response by Russia with its own output increase.
Translated by Guilherme Miranda
