Energy ministry instructs Aramco to increase capacity to 13mbpd in April
Saudi Arabia has switched courses after Russia refused to agree to further output cuts
Saudi Aramco announced in a Tadawul filing that it will increase its maximum sustainable capacity (MSC) to 13 million barrels per day.
"Saudi Aramco announces that it received a directive from the Ministry of Energy to increase its maximum sustainable capacity (MSC) from 12 million barrels per day (MMBD) to 13 MMBD," it wrote. The note explained that the MSC is determined by the state.
Saudi Arabia, the de facto leader of OPEC, has spearheaded production cuts for years, and earlier in March proposed further cuts of 1.5 million barrels per day in response to dwindling demand due to the coronavirus outbreak. Russia refused the deal, and Saudi Arabia slashed its own crude prices and removed limits on its output in response.