Oil Price War Ratchets Up, an Industrial Info Market Brief

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Oil prices fell on Wednesday after Saudi Aramco said it had received a directive from Saudi Arabia's Ministry of Energy to increase its maximum sustainable output capacity from 12 million barrels per day (BBL/d) to 13 million BBL/d. The move is part of a price war that erupted after Saudi Arabia tried to engineer a proposed OPEC+ production cut of around 1 million BBL/d, which was rejected by Russia. For more information, see March 10, 2020, article - Crude Oil Price War Roils Markets, Leads Some Firms to Cut Capex.

Also on Wednesday, the United Arab Emirates' Abu Dhabi National Oil Company (ADNOC) said it was positioned to supply the market with more than 4 million BBL/d in April, and will accelerate its planned 5 million BBL/d capacity target.

There are indications that Russia would be willing to explore further talks with OPEC and its allies, fueling hopes for stabilization of the oil markets.

Industrial Info is tracking more than $85 billion in project activity by Saudi Aramco, and $51 billion worth by ADNOC. Click here for a list of Saudi Aramco projects, and here for a list of ADNOC projects.