Saudi Arabia’s ministry of energy has instructed national oil company Saudi Aramco to continue supplying crude oil at 12.3 million barrels per day “over the coming months” according to the Saudi Press Agency.
Although it did not specify an end date, earlier this week, Saudi Aramco CEO Amin Nasser said that “Saudi Aramco can sustain the very low price and can sustain it for a long time,” CEO Amin Nasser said in an earnings call. “For the production in May…I doubt it would be any different from next month.”
Aramco’s maximum sustained output capacity is 12 million barrels per day, so the company will draw 300,000 barrels per day from its stocks to help bolster its output. Nasser noted that “Our maximum capacity is sustainable for one year without the need for any additional building. It does not require any additional capital.”
The Saudi energy ministry told Aramco to increase its maximum sustained capacity to 13 million barrels per day, although no outline or long-term plan was announced.
Saudi Aramco reported a 20.6% decrease in its net income for 2019 to $88.2 billion, compared to $11.1 billion in 2018.
