Saudi Arabia set to increase oil production to record high amid OPEC dispute

Saudi Arabia‘s state-run oil giant Saudi Aramco said Tuesday it would increase its crude oil production to 12.3 million barrels a day in April, a record amount.

The move seems to make good on the country’s promise over the weekend to increase output after Russia refused to co-operate on cutting production. That led to a 25 per cent plunge in the price of crude on Monday, the sharpest decline seen since the 1991 Gulf War. International benchmark Brent crude traded up over 7 per cent Tuesday at nearly $37 a barrel.

In a filing made Tuesday on Riyadh’s Tadawul stock market, Aramco — formally known as the Saudi Arabian Oil Co. — said that the increase in production represented a rise of 300,000 barrels per day.

“The company has agreed with its customers to provide them with such volumes starting 1 April 2020,” it said in the filing. “The company expects that this will have a positive, long-term financial effect.”

Saudi Aramco shares were up 9.7 per cent in trading Tuesday on the Tadawul to 30.95 riyals, or $8.25, giving the world’s most-valuable company a valuation of $1.65 trillion.

It came a day after Aramco shares collapsed by 10 per cent and were pulled from trading for reaching the Tadawul’s maximum permitted loss in a day, dropping its valuation to $1.4 trillion. Aramco had offered only a sliver of its shares on the Tadawul for investors.

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