RIYADH – Saudi Arabia’s oil giant Aramco said on Wednesday it would boost its maximum oil production capacity from 12 million to 13 million barrels per day (bpd).
In a statement on the website of Riyadh’s Tadawul stock market, the company said “it received a directive from the Ministry of Energy to increase its maximum sustainable capacity from 12 million barrels per day to 13.”
The statement did not mention when it will increase production.
This announcement comes just a day after the state-owned company said it would increase its production by 2.5 percent in April to reach 12.3 million bpd.
“The Company expects that this will have a positive, long-term financial effect,” Tadawul said in a statement on Tuesday.
It made a positive impact on the oil company as it closed up 9.88 percent in trading on Tuesday, Aramco’s biggest since its initial public offering in December.
Saudi Arabia made both moves after oil prices tumbled 25 percent on Monday as the spread of the coronavirus has left production in decline, with Riyadh and Moscow clashing over oil prices.
On Tuesday, Russia said it could boost its oil production by 200,000 bpd to 300,000 bpd in the short term, up to a total increase of 500,000 bpd in the long term.
United States President Donald Trump spoke with Saudi Crown Prince Mohammed bin Salman to discuss global energy markets, according to White House spokesman Judd Deere on Tuesday.
“Yesterday, President Donald Trump spoke with Crown Prince Mohammad Bin Salman of the Kingdom of Saudi Arabia.
“The President and the Crown Prince discussed global energy markets and other critical regional and bilateral issues.”
Although Saudi Arabia had initially proposed an output reduction of 1.5 million barrels, it cut its selling price for oil at the weekend, sending global benchmark prices down 30 percent at their lows.