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S. Aramco Makes Preventive Plans to Sustain Supply: CEO

Saudi Aramco has established emergency measures to sustain supply amid the increasing containment measures as the coronavirus spreads across the world, the country's state-run SPA news agency on Saturday quoted CEO Amin Nasser as saying.

Nasser said they are closely monitoring the situation and have started implementing preventive plans as well as "detailed emergency plans and leading medical support services, in order to reduce risks, ensure the best possible care and curb COVID-19 infection."

"The cornerstone of our company is the energy production, reliable supply and our commitment to our customers, especially in such difficult times," he said. He elaborated that as a result, the company has developed emergency and preventive plans in all areas of the business to ensure continuity to meet the energy needs of customers around the world.

After the emergence of the deadly coronavirus outbreak, which caused global crises with a death toll of more than 14,700, the worldwide decline in oil demand resulted in a standoff between major oil producers Russia and Saudi Arabia.

Tensions have risen in oil markets following a breakdown in talks between the Organization of Petroleum Exporting Countries (OPEC) and Russia on March 6 to secure a further oil output cut in their production levels.

The futures of Brent and WTI crude plummeted to under $30 per barrel, as fears of an imminent price war between producers became a reality.

On March 13, crude oil prices recorded an almost 20% weekly loss, posting the largest weekly decline in 29 years due to coronavirus-related low demand coupled with the risk of growing oversupply.

Saudi Arabia's state-run oil company, Saudi Aramco, announced last week that it would raise its crude oil supply to 12.3 million barrels per day in April. The Kingdom later announced that it aims to further increase oil production in April and May with the aim of peaking at more than 10 million barrels a day as the kingdom explores a new field.

(Anadolu Agency, March 23, 2020)

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