Saudi Aramco to supply 8.5 million barrels per day starting May

RIYADH, Saudi Arabia – Saudi oil giant Aramco said on Friday, April 17, it would market 8.5 million barrels per day (bpd) of crude from May under a producers’ agreement to restrict supply and boost plummeting prices.

The deal came after a price war between Riyadh and Russia saw the kingdom boost supplies to records of over 18 million bpd earlier this month.

In a brief statement on the website of the Saudi bourse, the firm said on Friday it would make available 8.5 million bpd, without clarifying whether or how this would be split between exports and domestic supply.

Global oil prices have collapsed amid economic turmoil due to the novel coronavirus pandemic, along with a supply glut and the Saudi-Russian price war.

But the OPEC+ alliance of major producers, led by Riyadh and Moscow, agreed on Sunday, April 12, to slash daily production by 9.7 million bpd over the next two months.

According to the deal, Saudi Arabia and Russia will cut 2.5 million bpd each from their October 2018 production levels of 11 million bpd.

Saudi energy minister Prince Abdulaziz bin Salman was quoted by local media on Tuesday, April 14, as saying that G20 producers outside OPEC+ have pledged to cut 3.7 million bpd.

Taken alongside the OPEC+ pledges and strategic reserves purchases, this could reduce global supply by 19.5 million barrels per day, he said. – Rappler.com