Saudi Energy Ministry tells Aramco to hike capacity to 13 mln barrels per day

A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia, on October 12, 2019. (File photo: Reuters)

Saudi Aramco announced that it has received a directive from the Ministry of Energy to increase its maximum sustainable capacity from 12 million barrels per day (bpd) to 13 million bpd, in a statement on the Saudi Stock Exchange (Tadawul) on Wednesday.

The news follows an announcement on Tuesday that Aramco would increase its crude oil supply to 12.3 million bpd in April, up around 2.5 million bpd from March, and 300,000 more than the company’s current maximum sustained capacity.

Following the breakdown of talks on Friday between OPEC members and Russia on securing a further output cut of 1.5 million barrels per day, lines have been drawn in an oil market price war.

Futures prices of Brent crude fell over 25 percent to around $33 per barrel in Monday morning trading, while North America’s WTI crude dropped to around $29 per barrel in the worst day of trading for both futures contracts since 1991. Prices have since recovered around 10 percent.

Last Update: Wednesday, 11 March 2020 KSA 10:11 - GMT 07:11