Saudi Arabia Boosts Oil Exports to Hit 10.6mn Bpd, Starting from May

Saudi Arabia plans to heighten a crude oil exports by adding another 600,000 barrels to 10.6 million barrels per day from May as the country is burning less oil for power generation and lower domestic consumption caused by a novel coronavirus.

Even global demand and crude price has been falling because of travel restriction measures imposed by many nations across the world, but Saudi Arabia has boosted its oil production after Russia disagreed with the Organization of the Petroleum Exporting Countries (OPEC) that has requested all nation members to reduce an output by 1.5 million barrels per day until the end of this year.

Saudi authorities said to a national petroleum company Aramco this month to maintain supplying crude at a record rate of 12.3 million bpd from April and export more 10 million bpd from May.

Worldwide consumption for crude is expected to decrease 15 million to 20 million bpd, down as much as 20% compared to the amount of oil used in the previous year, which affected by limited economic activity amid the covid-19 outbreak.

While oil prices slashed sharply on Monday, with Brent hitting its lowest level in 18 years and U.S. crude dropped below $20, as the raise of concern over the global shutdown could last months and demand for fuel could decline further.