Source: New York – Reuters
Amin Al-Nasser, CEO of Saudi Aramco, announced yesterday, Wednesday, that the company received a mandate from the Ministry of Energy to increase its oil production capacity to 13 million barrels per day from 12 million barrels per day at present, an increase of one million barrels per day.
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 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 US Energy Information Administration on Wednesday.