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.



Saudi Mineral Resources Minister, US Energy Secretary Discuss Strengthening Strategic Cooperation 

The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
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Saudi Mineral Resources Minister, US Energy Secretary Discuss Strengthening Strategic Cooperation 

The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)
The Saudi and American delegations meet at the Ministry of Industry and Mineral Resources on Sunday. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef held official talks on Sunday with US Secretary of Energy Chris Wright as part of his current visit to the Kingdom.

The talks at the ministry headquarters in Riyadh focused on strengthening the strategic relationship between Saudi Arabia and the US in the mining and minerals sector.

They explored ways to expand cooperation in the mining sector and emphasized the importance of minerals in the energy transition, advanced technology industries, and modern economies linked to clean energy, as well as their significance in the electric vehicle industry and its components.

The two sides discussed ways to boost economic cooperation and high-value investment opportunities in both countries and the enablers available to leverage these opportunities in support of deepening their longstanding partnership.

Alkhorayef invited the US energy secretary to attend the Future Minerals Forum, which will be held in Riyadh next year.

Wright later visited the King Fahd University of Petroleum and Minerals (KFUPM) in Dhahran. He was welcomed by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz, KFUPM President Muhammad Al-Saggaf, and senior university officials.

Wright was briefed on the university's academic and research specializations, as well as its efforts to foster innovation and develop human capital in the fields of energy, engineering, and science. He met with faculty members and students and learned about the university's initiatives to advance educational and research programs in line with the highest international standards.

He was introduced to KFUPM’s international collaboration and academic exchange programs, particularly those with leading US institutions, which are designed to foster knowledge sharing, encourage joint learning, and provide students with global exposure that enhances both their academic growth and career prospects.

This visit underscores KFUPM’s role as a leading academic and research institution in the energy sector and strengthens research and academic cooperation between Saudi Arabia and the US.