Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Saudis to push oil output higher but won’t flood market

    Saudis to push oil output higher but won’t flood market

    April 29, 2016
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Khurais oil field, Saudi Arabia.
    *Khurais oil field, Saudi Arabia.

    29 April 2016, Riyadh — Saudi Arabia’s oil output will edge up close to record highs in coming weeks to meet summer demand for power but is unlikely to be pushed to the limit and flood global markets, Saudi-based industry sources said.

    Production may rise to around 10.5 million barrels per day, b/d, during summer, the sources said. Supply in April has held steady to slightly lower at about 10.15 million b/d said three industry sources who monitor Saudi output.

    The predictions may help ease market fears that Saudi Arabia could steeply add to a global glut after production-freeze talks in Qatar this month collapsed following Riyadh’s refusal to sign the deal without participation by Iran.

    Days before the meeting, Saudi Arabia’s top oil official, Deputy Crown Prince Mohammed bin Salman, said the kingdom could boost output immediately to 11.5 million b/d and go to 12.5 million in six to nine months “if we wanted to”.

    Some analysts said the comments signaled a new phase in a battle for market share with Iran, which is ramping up its own exports after the lifting of international sanctions.

    But Saudi-based industry sources told Reuters that Riyadh does not plan to dump more oil into the market if there is no demand.

    They said the comments by Prince Mohammed were made to highlight the theoretical ability of the kingdom to raise output rather than its immediate plans.

    “Eleven million b/d? No, I don’t see it,” one source said.

    The sources said production would likely stay at 10.2-10.3 million b/d and could rise by some 200,000-300,000 b/d in the hot summer months to around 10.5 million.

    Production often rises briefly in summer, when the kingdom burns more than 800,000 b/d to generate power as demand for air conditioning surges.

    State oil giant Saudi Aramco has a stated production capacity of 12 million b/d and maintains 1.5-2.0 million b/d as a cushion in case of any global supply disruption.

    But production has never reached 11 million b/d. The kingdom pumped 10.56 million b/d, a record, in June last year. It kept output in March steady at 10.22 million b/d and has yet to disclose figures for April.

    Earlier this month, Aramco sold 730,000 barrels for June loading to Chinese refinery Shandong Chambroad Petrochemicals, one of about 20 independent refineries nicknamed “teapots”.

    This was Aramco’s first spot sale to a teapot plant, but Saudi-based industry sources said such a deal should not be viewed as an escalation of any battle for market share.

    “It’s not unusual to sell spot,” one of the industry sources said. “It’s basically pure demand-driven.”
    *Rania El Gamal & Reem Shamseddine; Editing – Dale Hudson – Reuters

    Related News

    Collaboration is key to unlocking Nigeria’s marginal field potential

    Oil prices steady as investors weigh trade war impact

    Ex-Pioneer CEO cannot challenge order barring him from Exxon board, FTC says

    E-book
    Resilience Exhibition

    Latest News

    Court dismisses N5.74bn Macobarb’s suit against NLNG

    July 16, 2025

    Collaboration is key to unlocking Nigeria’s marginal field potential

    July 16, 2025

    ANPG President to outline Angola’s $60bn investment strategy at AOG 2025

    July 16, 2025

    West African development bank expects regional growth to edge lower

    July 16, 2025

    Oil prices steady as investors weigh trade war impact

    July 16, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.