Saudi Aramco’s crude oil production reached a maximum capacity of 12 million bpd, Reuters reported, citing two industry sources. This came after Saudi Arabia pledged to supply the market with more than 12 million bpd despite US pressure on the country to stop flooding the market amid dwindling demand due to the coronavirus pandemic.
Saudi Arabia vowed to export about 10 million bpd of crude oil in April. Supply to both domestic and export markets may differ with the production level, depending on how many barrels withdrawn from the storage. Saudi Aramco stores hundreds of millions of barrels of crude in tanks inside and outside Saudi Arabia.
Aramco has also reportedly asked oil service providers to prepare their workforce and equipment to help increase its capacity to 13 million bpd. However, it remains unclear how Saudi Arabia will find customers for the excess supply in a time when the COVID-19 pandemic destroys demand.
Saudi-Russia price war has severely hurt producers with higher production costs, including US shale producers. US President Donald Trump, on Tuesday, said he would talk with Saudi Arabia and Russia if needed to address the collapse in oil prices.
