Saudi Prince Says He can Add a Mil­lion Bar­rels Now

If Saudi chose to raise in­vest­ment in its oil in­dus­try, to­tal pro­duc­tion could be in­creased to 20 m bar­rels a day

The Economic Times - - Commodities Plus -

Saudi Ara­bia could raise crude out­put by more than a mil­lion bar­rels a day im­me­di­ately if there was de­mand for it, said the king­dom’s Deputy Crown Prince, as he re­it­er­ated the na­tion would only agree to freeze pro­duc­tion if all ma­jor pro­duc­ers in­clud­ing Iran do the same.

The world’s largest oil ex­porter could in­crease out­put to 11.5 mil­lion bar­rels a day im­me­di­ately and go to 12.5 mil­lion in six to nine months “if we wanted to,” Prince Mo­hammed bin Sal­man, who is also chair­man of the Supreme Coun­cil of Saudi Ara- bian Oil Co, said in an in­ter­view on Thurs­day. The country pumped 10.2 mil­lion bar­rels a day last month. If the king­dom chose to in­crease in­vest­ment in its oil in­dus­try, to­tal pro­duc­tion ca­pac­ity could be in­creased to 20 mil­lion bar­rels a day, the prince said.

“I don’t sug­gest that we should pro­duce more, but we can pro­duce more,” said the prince. “We can pro­duce 20 mil­lion bar­rels of oil per day if we in­vested in pro­duc­tion ca­pac­ity, but we can’t pro­duce be­yond 20 mil­lion.

He re­it­er­ated that Saudi’s com­mit­ment to a pro­duc­tion cap would de­pend on the par­tic­i­pa­tion of other na­tions in­clud­ing Iran.

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