Saudi Arabia starts a budget contingency plan on the basis of $ 12 a barrel
10:14 - 11/03/2020
The information / Baghdad ..
The American "Wall Street Journal" revealed that Saudi Arabia has embarked on a comprehensive emergency plan to deal with sharp and unprecedented falls in oil prices on the basis of $ 12 a barrel.
The newspaper said, in a report, that Riyadh had instructed Finance Ministry officials to prepare a budget scenario that would deal with a scenario of low Brent crude prices in a range between 12 and 20 dollars per barrel.
The newspaper also quoted well-informed sources as saying that senior authorities have asked all Saudi ministries to reduce their costs significantly, in preparation for this.
And Saudi Arabia decided, yesterday, Tuesday, to increase oil production by maximum capacity, in a decision that involves a major challenge to Russia and was classified by experts as an oil war initiated by Riyadh in a dramatic manner, while Russia announced its readiness to also increase production.
The Saudi oil company, Aramco, said that it intends to provide its customers with 12.3 million barrels of oil per day next April, an increase of 300 thousand barrels over its maximum sustainable capacity per day.
Saudi Arabia's current oil production is 9.6 million barrels per day, according to figures last January, which is less than the maximum sustainable capacity it can produce, but the market situation required Riyadh to control production.
These successive developments come after the collapse of talks between "OPEC" and other producers led by Russia, the group known as "OPEC +", which sought to extend joint efforts to reduce supplies after the end of this March.
The cooperation between the producers in the "OPEC +", which lasted 3 years, ended last Friday, after Moscow refused to support greater production cuts to reinforce the prices that were affected by the outbreak of the new Corona virus. Ended / 25