Saudi Arabia energy minister Prince Abdulaziz bin Salman said the kingdom will fulfil its obligations to supply 12.3 million b/d this month. The minister said Aramco is producing 12.3 million b/d of crude although the company put its maximum sustainable capacity at 12 million b/d last month.
Saudi production will drop to 8.49 million b/d in May and June when the latest OPEC+ restraint agreement begins. Saudi Arabia agreed to cut from an 11 million b/d baseline as part of a 23-country agreement to reduce crude output by 9.7 million b/d in May and June.
Output cuts will then be tapered to 7.7 million b/d in the July-December period and to 5.8 million b/d from January 2021 until April 2022. Asked whether he thought the OPEC+ agreement was advantageous for both prices and for preserving Saudi market share, Prince Abdulaziz said a 24 percent price increase over the last week was "rewarding".
Domestically, the heavy oil Khafji field in the offshore Neutral Zone is ramping up production and will reach around 100,000 b/d over the next two to three months.
