Arabia announces 20% cut in oil barrels

English Mar 9, 2020

Saudi Arabia has announced 20% oil price discounts for April, dropping on Sunday the stock exchanges of the countries of the Persian Gulf and the value of the shares of the state-owned Aramco, the largest oil producer in the world.

According to the Financial Times, Arabia also plans to increase production to over 10 million barrels a day. The measure came after Russia rejected at the OPEC + meeting a reduction of 1.5 million barrels in daily world production. Saudi Arabia produces about 9.5 million barrels a day, although its capacity is 12.5 million. The USA produces 13 million barrels a day.

The price of oil has already fallen by 30% this year, with reduced demand from China and other Asian countries hit by the coronavirus outbreak. This fall will certainly widen, stressing markets around the world.


Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.