Saudi Crude Supply Increases as Pact to Rein In Oil Production Expires

FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
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Saudi Crude Supply Increases as Pact to Rein In Oil Production Expires

FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov

Saudi Arabia’s crude supply rose on Wednesday to a record of more than 12 million barrels per day, two industry sources said. This came a day after a producer pact to rein in oil production expired on Tuesday.

The Kingdom had said that its oil exports would be about 10 million bpd, but it gave no indication of how much crude would go into storage, amid a plunge in demand triggered by the coronavirus outbreak.

Meanwhile, US and Russian energy officials held rare talks about oil after crude prices crashed to levels last seen almost 20 years ago.

For his part, US President Donald Trump warned that oil cheaper “than water” was hurting the industry, Reuters reported.

Oil prices fell nearly 70% from January highs as lockdowns due to the coronavirus hammered demand and as producing nations flooded the market in a race for market share after a deal they engineered on supply curbs broke down.

On Tuesday, US Energy Secretary Dan Brouillette spoke with his Russian counterpart Alexander Novak about the price slump and they agreed to hold future discussions involving other major world oil producers and consumers.

The call occurred a day after Trump and Russia's president Vladimir Putin agreed in a phone conversation to have their top energy officials discuss global oil market turmoil.

Trump said on Tuesday he would join Saudi Arabia and Russia, if need be, for talks about the fall in oil prices, noting that oil slid towards $25 a barrel, after touching its lowest level in 18 years.

“There is so much oil and in some cases it’s probably less valuable than water. At some points of the world the water is much more valuable. So, we’ve never seen anything like it,” Trump said.



Riyadh Seeks to Ease Traffic Congestion by Launching Metro Project

The Riyadh Metro project covers six main lines with a total length of 176 kilometers and 84 stations. (King Abdulaziz Project for Public Transport)
The Riyadh Metro project covers six main lines with a total length of 176 kilometers and 84 stations. (King Abdulaziz Project for Public Transport)
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Riyadh Seeks to Ease Traffic Congestion by Launching Metro Project

The Riyadh Metro project covers six main lines with a total length of 176 kilometers and 84 stations. (King Abdulaziz Project for Public Transport)
The Riyadh Metro project covers six main lines with a total length of 176 kilometers and 84 stations. (King Abdulaziz Project for Public Transport)

Saudi Arabia is preparing to launch the “Riyadh Metro” project, one of the largest public transportation projects in the region, which promises to improve the quality of life for residents by reducing traffic congestion and air pollution.

Minister of Transport and Logistics Eng. Saleh Al-Jasser recently announced that the landmark Riyadh Metro is in its final stages and nearing completion.

In 2013, the government awarded contracts worth $22.5 billion to three international consortia led by some of the world’s largest railway manufacturers to design and build Riyadh’s first metro network. The main network for the Riyadh Bus system was completed in Sept. 2023, serving as a crucial feeder to the metro system through 54 routes and 2,145 stations and stops spread across the capital.

The Riyadh Metro consists of a network of six main lines spanning the city, aiming to connect vital areas and facilitate daily commutes for the city’s 7.5 million residents. As the capital aims to double its population by 2030, the government recently allocated SAR 6 billion ($1.6 billion) to improve the city’s infrastructure, a figure four times higher than previous contracts, according to the Riyadh Municipality.

The Riyadh Metro project covers six main lines with a total length of 176 kilometers and 84 stations. The metro network is also connected to King Khalid International Airport, the King Abdullah Financial District, major universities, downtown Riyadh, and the public transport center, according to the Royal Commission for Riyadh City.

The six routes of the Riyadh Metro network are:

1. Line 1 (Blue Line): Al-Olaya - Batha - Al-Ha’ir axis, 38 km long.

2. Line 2 (Red Line): King Abdullah Road, 25.3 km long.

3. Line 3 (Orange Line): Madinah Road - Prince Saad bin Abdulrahman Al-Awal axis, 40.7 km long.

4. Line 4 (Yellow Line): King Khalid International Airport axis, 29.6 km long.

5. Line 5 (Green Line): King Abdulaziz Road axis, 12.9 km long.

6. Line 6 (Purple Line): Abdulrahman bin Awf Road - Sheikh Hassan bin Hussein bin Ali Road axis, 30 km long.

Ticket prices

The cost of a ticket for the Riyadh Bus, the main feeder for the Riyadh Metro, is 4 riyals ($1.07) and is valid for two hours, starting from the first check-in on a bus or by activating the ticket through the app.

The same ticket can be used to transfer to another bus within this time. Children up to six years old can ride for free, while metro ticket prices have not yet been announced.

Infrastructure

The public transport project includes 21 public parking areas, each accommodating between 200 and 600 cars, to facilitate the use of the metro network. These parking spots are distributed to make transfers easier.

In September, the Riyadh Municipality signed five contracts worth SAR 6 billion to improve road quality, representing four times the value of previous contracts. Additionally, SAR 70 billion ($18.6 billion) has been allocated to improve the road network in Riyadh, as previously announced by Minister Al-Jasser during the Smart Cities Conference in May.

Eco-friendly

Environmentally, Riyadh’s buses use low-sulfur fuel, making them among the most eco-friendly vehicles, contributing significantly to reducing carbon emissions and improving air quality, according to the Royal Commission for Riyadh City.

The metro network will also play an active role in reducing harmful greenhouse gases and mitigating rising temperatures in the city by providing sustainable transportation options. This effort aligns with broader goals to improve the quality of life for residents and visitors and create a healthy environment for all.