DUBAI: Saudi Aramco, the world’s largest oil company, announced on Wednesday that it had received a directive from the Ministry of Energy to increase its output from 12 million to 13 million barrels per day (bpd).
The news comes after a statement on Tuesday that said Aramco would increase its crude oil supply to 12.3 million bpd in April – an increase of approximately 2.5 million bpd on the previous month.
The announcement - coming in the middle of unprecedented volatility in global energy markets - was preceded by a brief suspension of its shares on the Tadawul (the Saudi stock exchange), at its own request, as is required when a listed company is about to announce a “material event.”
The increase in crude production to record levels is in a bid to win market share in the global tussle over energy prices.
The move to increase output dramatically follows notification to customers that Aramco would offer big discounts around the world, and further ratchets up the pressure on global energy markets.
Tuesday’s announcement was followed by an immediate response by Russia, the world’s second biggest producer, with its own output increase.
