Saudi Arabia steamed ahead with its new
energy play by directing the kingdom’s oil
company Aramco on Wednesday to increase
its maximum production capacity, while Abu
Dhabi’s oil and gas company ADNOC followed
suit by saying it was boosting output by 25% to
4 million barrels per day.
Abu Dhabi’s decision to increase production
comes after Saudi Arabia took steps to
essentially flood the market to dominate a
greater share, after major oil producer Russia
refused to go along with more production cuts.
Meanwhile, global demand for oil is slowing
down due to the outbreak of a new virus that’s
hampered travel and business.
Saudi Arabia said this week it would increase its
crude oil production to 12.3 million barrels a day
starting in April. That’s 300,000 barrels per day
more than Aramco’s current maximum sustained
capacity. Now the company says it is boosting
that output capacity to 13 million barrels per day,
giving the kingdom greater maneuverability.
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