Saudi Arabia has decided to increase oil exports to a record high since May

From May 2020, Saudi Arabia is going to increase oil exports to a record 10.6 million barrels per day due to the release of 600 thousand barrels from the domestic market, according to the Ministry of Energy of the Kingdom.

“The increase in exports will be possible due to the use of gas from the al-Fadili GPP for power generation facilities in the domestic market, as well as due to a decrease in demand for petroleum products, which is caused by quarantine measures in connection with the spread of coronavirus,” Free News reports the Ministry of Energy of the country.

Meanwhile, on Monday, prices for the main brands of oil fell by 6-9%, trading near the lowest levels since 2002. The reason for the drop is the expectation of a negative impact of the coronavirus pandemic on the demand for raw materials.

The price of may Brent oil futures falls by 8.62%, to 22.78 dollars per barrel. This is the lowest level since November 2002. June Brent futures are down 5.9% to $ 26.3 per barrel.

May futures for WTI crude oil are falling by 5.67%, to $ 20.3 per barrel, while the cost of WTI has already fallen below $ 20 – for the first time since February 2002.

Traders fear that the pandemic will cause significant damage to the global economy and demand for black gold.

“Central banks are easing monetary policy, and governments are offering economic support packages, but these are only supportive measures, not a radical solution. Until we see signs of an end to the pandemic, oil prices will remain under pressure, ” said Satoru Yoshida, commodity analyst at Rakuten Securities.

He expects that the next level of support for the price of WTI oil may be at the level of $ 17, which was last recorded in 2001.

Author: Flyn Braun
Graduated from Cambridge University. Previously, he worked in various diferent news media. Currently, it is a columnist of the us news section in the Free News editors.
Function: Editor
E-mail: Braun.freenews@gmail.com