Riyadh plans to raise daily oil exports in an escalation with Moscow

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RIYADH – Saudi Arabia announced on Tuesday that it plans to raise its oil exports to more than 10 million barrels per day, with Riyadh escalating the oil war with Russia.

The Saudi measure comes after Russia refused to implement another major production cut proposed by OPEC to stabilize crude markets, which were hit by concerns about the economic impact of the Covid-19 virus.

“The kingdom, the world’s largest oil exporter, intends to increase its crude oil exports to more than ten million barrels per day as of May, while reducing dependence on crude to generate electricity,” the spokesman said.

And he added that “the kingdom will use the gas produced from the Al-Fadhli gas plant to replace about 250 thousand barrels per day of domestic oil consumption.”

According to the statement, this “will enable the Kingdom to increase its exports of crude during the next few months.

Saudi Arabia announced last week that it would increase its daily production of crude by adding 2.5 million barrels of oil per day, with the aim of raising production to 12.3 million barrels in April.

Saudi Aramco President Amin Al-Nasser announced on Monday that the oil company will use its stocks to add 300,000 barrels to its daily production of crude in order to raise it.

Aramco’s Al-Fadhli Gas plant currently produces 1.5 billion cubic feet of gas per day, while Aramco says it will increase to 2.5 billion cubic feet in the coming months.

This will raise Saudi gas production to 12.2 billion cubic feet per day, which means more oil will be available for export.

Saudi Arabia said last week that it would launch a program to increase production capacity for the first time in more than ten years, waving to Russia and other competitors that it was ready for a long battle over production levels and market shares.

Oil has fallen more than 40 percent to $ 30 a barrel since talks between OPEC and independent producers collapsed on March 6, without an agreement to deepen or extend production cuts in place since 2017.

Saudi Arabia, the largest producer within OPEC, wanted to deepen production cuts to support prices hit by the Corona virus, but Russia has not agreed to further cuts.

Due to fears of the effects of the Corona Virus, the Kingdom took severe measures, including suspending flights, closing ports, preventing prayers in mosques and gatherings, and stopping the study, while global markets, including the Gulf, suffered heavy losses in the wake of the spread of the epidemic.





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