Saudi Arabia increases oil production to record

DUBAI Saudi Arabia state oil giant Saudi Aramco He said Tuesday that it would increase to 12.3 million barrels per day in April, a record amount.

The measure seemed to fulfill the country's promise over the weekend to increase production after Russia refused to cooperate to reduce production. That led to a 25% drop in the price of crude oil on Monday, the largest decline seen since the 1991 Gulf War. Brent international reference crude rose more than 8% on Tuesday more than $ 37 per barrel.

In a presentation made Tuesday at the Riad Tadawul stock market, Aramco — formally known as the Saudi Arabia n Oil Co. — said that the increase in production represented a rise of 300,000 barrels per day. Analysts said that likely would involve releasing stored barrels as well.

The company agreed with its customers to provide them with these volumes as of April 1, 2020, he said in the presentation. The company expects this to have a positive long-term financial effect.

Saudi Aramco shares, whose trade briefly halted before announcing the production decision, closed up 9.88% in trading to 31.15 riyals, or $8.30, giving the world's most-valuable company a valuation of $1.66 trillion. That's still below its initial public offering price of 32 riyals in December.

It came a day after Aramco shares collapsed by 10% and were pulled from trading for reaching the Tadawul's maximum permitted loss in a day, dropping its valuation to $ 1.4 trillion. Aramco had offered only a sliver of its shares on the Tadawul for investors.

Aramco's decision likely will flood global energy markets and put further pressure on prices. The company had reached $ 2 trillion in early days of trading in December.

Lower oil prices occur because there is less demand for air travel amid the spread of the new coronavirus worldwide, which further depresses prices. However, that will probably lower gas prices at the pump for Americans. On average, a gallon of lead-free lead in the US UU. It sold for $ 2.36 per gallon, according to AAA, below $ 2.43 a month ago.