NEW YORK (Reuters) – The Saudi Maritime Transport Company (Bahri) has temporarily leased up to 19 supertankers this week, of which six are expected to transport about 12 million barrels of Saudi crude to the United States, according to data and sources, with Riyadh increasing shipments In the midst of a price war with Russia.
The Saudi oil giant, Saudi Aramco, said on Tuesday that it will raise oil supplies to a record level at 12.3 million barrels per day in April, which is 300 thousand barrels per day more than its maximum production capacity.
Sources in the shipping sector said that Bahri’s efforts to book tankers have led the market activity over the past two days, which helps in a sharp rise in freight rates for the giant carriers and bulk carriers.
Shipments to the United States will mark a sharp increase compared to the past few years, when Saudi Arabia cut production in parallel with other major producers to support prices while the United States increased its production of shale oil to record levels.
But Saudi Arabia on Saturday lowered its crude prices to customers around the world after OPEC failed to reach an agreement with Russia, the world’s second largest oil producer, to deepen production cuts aimed at boosting prices.
Over the past four weeks, average Saudi oil shipments to the United States have averaged 431,000 barrels per day, according to data released by the U.S. Energy Information Administration on Wednesday.
Wajdi Al-Alfy prepared for the Arab Bulletin