aramco capacity push underlines shift in strategy

摘要

State-controlled Saudi Aramco plans to boost its crude capacity by 1mn b/d to 13mn b/d to underpin its return to a market share strategy, following the collapse of the Opec+ deal that Riyadh and Moscow have led since 2016. Russia’s refusal this month to agree to further crude cuts in the face of the demand shock precipitated by the coronavirus outbreak prompted Saudi Arabia to abandon output restraint and aggressively pursue market share for the foresee- able future. Aramco says it will supply 12.3mn b/d of crude to its buyers — 300,000 b/d above its current sustainable capacity — and it has heavily dis- counted its April formula prices against regional benchmarks to enhance the competitiveness of its oil. The frm can increase output to well over 11mn b/d by mid-April, and to above 12mn b/d by the end of that month, according to former senior Aramco executive Sadad al-Husseini of the Husseini Energy consultancy.