Dubai, United Arab Emirates (CNN) – The UAE authorities announced, on Wednesday evening, their readiness to supply oil markets with four million barrels of oil per day, in an announcement that comes on the same day following the issuance of directives in the Kingdom of Saudi Arabia to raise the maximum level of daily production from 12 to 13 million Barrels per day.
The UAE announcement was made by Sultan Al-Jaber, Minister of State and CEO of ADNOC and its group of companies, who said: “In line with our strategy for growth, expansion and increase in production, ADNOC has the potential to supply markets with more than four million barrels per day next April, and we are also working to accelerate progress towards our goal To reach a production capacity of five million barrels per day. “
Amin Al-Nasser, President of Aramco, which is considered the jewel of the oil industries in Saudi Arabia, had announced, on Wednesday, that he had received guidance from the Kingdom’s Energy Ministry to raise the maximum daily production level from 12 to 13 million barrels per day, saying: “The company received guidance from the Ministry of Energy to operate To raise the level of maximum sustainable production capacity (MSC) from 12 to 13 million barrels per day, and the company is working to its full potential to speed up the implementation of this directive, “according to the Saudi Press Agency.
Russian Energy Minister Alexander Novak said on Russia’s state channel 24 that “the doors are not closed” to reaching an agreement with OPEC countries in the future .. However, Putin knows about him not to back down, which indicates a longer-term possibility of this crisis … at a time when If Saudi Arabia were to force Russia to reduce its oil production, prices would rise quickly.
The fundamental question is how long will oil prices remain affected by what has become known as the “oil price war” between Saudi Arabia and Russia? The answer lies in Riyadh and Moscow, where a source familiar with the ongoing discussions revealed that efforts are being made to restore dialogue between Russia and OPEC.
This market turmoil comes after the collapse of the oil alliance between OPEC and Russia, where the Organization of Petroleum Exporting Countries (OPEC), led by the Kingdom of Saudi Arabia, had proposed to Russia an additional cut in daily oil production, with the aim of stopping the drop in oil prices following the decline in global demand, especially From China, with the spread of the Corona virus, Russia rejected the proposal and the two sides did not reach an agreement.
The failure of the meeting between OPEC and Russia led to a shock in the oil industry, which caused oil prices to drop by 10% on Friday. Oil prices have been stuck in a falling market for some time after the outbreak of the Corona virus, which caused a sharp drop in demand for crude.
After the failure to reach an agreement, the Kingdom of Saudi Arabia stepped up the situation, as analysts said that the Kingdom reduced its official selling prices for April by 6 dollars to 8 dollars, in an attempt to restore market share and increase pressure on Russia.
– .
