State-owned Saudi Aramco has offered oil buyers the biggest discounts in the last 20 years and promises to increase production by more than 2 million barrels per day.

About it reports Bloomberg .

The newspaper writes that Saudi Arabia plans to increase oil production in April in response to the breakdown of the OPEC + deal with Russia. On Saturday, March 7, Riyadh reduced the price of oil it sells to foreign markets by a maximum of 20 years, trying to drive unprecedented discounts to oil companies in Europe, Asia and the United States to buy Saudi oil, 

Within hours of the failure of the talks in Vienna, Riyadh has lowered its so-called official selling prices by offering record discounts on some of the crude oil it sells around the world, the agency said, citing a copy of the bid.

State-owned oil company Saudi Aramco announces to oil refiners the price at which it will sell its oil, usually adjusting it in the range of a few cents to several dollars, the agency explains. But on March 7, the company told buyers it was reducing official prices by $ 6-8 a barrel in all regions. 

In particular, Saudi Aramco offered a discount of $ 8 a barrel on its Arab Light oil for refineries in northwestern Europe. The price of a barrel of this oil was $ 10.25 below the Brent oil. Urals Russian oil is offered at a discount of $ 2 per barrel to Brent oil prices.

Riyadh’s decision could also affect other Gulf countries, which export 14 million barrels of oil each day: the region’s producers usually follow Aramco, the newspaper said.

Recall:

OPEC + countries failed to negotiate and extend the agreement on oil production reduction on March 6. The current agreement will expire on April 1. Thereafter, all restrictions on oil production in OPEC and non-OPEC countries will be lifted. Increasing oil production by Russia will depend only on the plans of the oil companies. The stumbling block in negotiations was Moscow’s position, which refused to deepen restrictions. Without Russia’s participation, OPEC countries see no sense in continuing to artificially restrict production.

(c) epravda