UAE-based oil company Adnoc may increase its supply to the market to over 4 million barrels of oil per day from April, as global oil prices drastically drop.
Reportedly, Adnoc is also speeding up its original plan to produce 5 million barrels of oil per day by 2030.
Adnoc Group chief executive officer, Dr. Sultan Ahmed Al Jaber told the media, “In line with our production capacity growth strategy announced by the Supreme Petroleum Council, we are in a position to supply the market with over 4 million bpd in April. In addition, we will accelerate our planned 5 million bpd capacity target.”
“In response to market conditions, and to provide better forward visibility to our customers, ADNOC will shortly announce forward prices for the months of March and April 2020. This decision has been made to ensure that our customers have visibility of the price so they can plan accordingly.”
Currently, Adnoc supplies around 3 million barrels of oil per day to its suppliers.
Global crude oil prices have dropped by 30 percent, the lowest since the 1991 Gulf War. This drastic drop is due to the failed negotiations between Saudi Arabia-led OPEC and Russia. Saudi Arabia slashed oil prices by 10 percent last Saturday and as a result, oil stocks across various exchanges in Asia-Pacific, Tokyo, Australia, Hong Kong, and the US plunged in early Monday trading.
Recently, Saudi Arabia’s state-owned oil company Aramco has announced that it will increase crude production by 300,000 barrels per day over the company’s maximum sustained capacity of 12 million barrels.
The move to increase crude production is a part of the Saudi government’s plan to stay competitive in the global oil market amid a price war with Russia.